Eight 50% Crashes… Can Ethereum Stage Another V-Shaped Rebound?

▲ Ethereum (ETH) / ChatGPT-generated image ©

Ethereum (ETH) has plunged 37% over the past 30 days, slipping below $2,000, but optimism is resurfacing that a historic “V-shaped rebound” could occur once again.

According to investment outlet FXStreet on February 12 (local time), Fundstrat Head of Research Tom Lee said at a conference in Hong Kong, “Since 2018, Ethereum has fallen more than 50% on eight occasions, and each time it formed a V-shaped bottom.” He added, “It has recovered 100% at almost the same speed as its decline,” arguing that the current correction is likely to follow a similar trajectory.

Lee’s remarks align with technical bottoming signals. BitMine market analyst Tom DeMark suggested $1,890 as a potential low, explaining that if an “undercut” pattern—where the price tests that level twice—forms, it could establish a more complete bottom. Lee also emphasized similarities to patterns seen in the fall of 2018, the fall of 2022, and April 2025, stating, “If we have already experienced a significant drop, it may be time to consider opportunities rather than selling.”

On February 6, Ethereum fell to as low as $1,760 on Coinbase, approaching its 2025 low in the early $1,400 range. It has since failed to reclaim $2,000 and is currently trading around $1,970. Despite the 37% drop over the past month, some market observers suggest that downside momentum is beginning to slow.

In contrast to the weak price performance, staking demand has reached an all-time high. According to ValidatorQueue, the current staking waiting period has hit a record 71 days, with 4 million ETH queued to become validators. A total of 36.7 million ETH—equivalent to 30.3% of total supply—are staked, representing roughly $74 billion. Notably, funds continue to be locked up despite a relatively modest annual yield of 2.83%.

Market analyst “Milk Road” commented, “With one-third of all ETH now illiquid, a significant supply constraint has emerged,” adding, “The fact that $74 billion remains locked during a price downturn signals long-term conviction rather than short-term speculation.” Attention is now focused on whether the growing staking volume amid repeated sharp declines could once again provide the foundation for a V-shaped recovery.

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