Oil Prices Are Sabotaging Ethereum - Tom Lee Uncovers the Secret!

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What’s Dragging <a href="https://jpykr.com/eth-usd/">Ethereum</a> Down? BitMine’s Tom Lee Has an Answer

Ethereum (ETH) has erased all its May gains, dropping nearly 10% in the past week. 

Ethereum, the second-largest cryptocurrency, briefly dropped to $2,097 on Binance Sunday—its lowest price since April 7th. As of right now, it’s trading at $2,116.82, which is down about 2.88% from yesterday.

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But what’s behind this slump? BitMine chairman Tom Lee points to oil.

Oil Becomes Ethereum’s Biggest Headwind

Lee noted on X that Ethereum and oil prices have been moving in opposite directions more strongly than ever before. He explained that recent drops in oil prices have been the main reason Ethereum’s value has been declining.

Ethereum (ETH) has been facing selling pressure, and one major reason, in my opinion, is rising oil prices. The correlation between ETH and oil prices is currently at its highest level ever, meaning they tend to move in opposite directions.

Brent crude oil prices were around $111 a barrel on Monday, increasing by about 16.4% in the last month. This price increase is largely due to continued tensions between the US and Iran, and the closing of a vital shipping route, the Strait of Hormuz.

Lee believes a change in oil prices could help Ethereum (ETH) start to recover. While acknowledging recent price drops, he dismissed them as temporary fluctuations, stating that the underlying factors supporting ETH’s growth are still strong.

According to Fundstrat’s co-founder, the two main factors that will drive Ethereum’s growth until 2026 are the increasing use of tokenization and the development of more advanced, autonomous AI systems.

He’s considered these points in his Ethereum predictions before. Just earlier this month, he estimated that Ethereum could climb to between $9,000 and $12,000 by the end of the year.

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2026-05-18 07:55