Sell-Off Seen as Institutional Window Dressing, ETH Eyes Recovery

• • Price is holding at the lower equilibrium, building a tight base after a brief capitulation.
• • Tom Lee reads the ETH sell-off as quarterly window dressing, backed by whale buying.

ETH's recent sell-off is more about the calendar than fundamentals. Tom Lee calls it a quarterly window-dressing effect: funds offloading weak assets so their end-of-quarter reports look clean. The tell is that big treasuries like Bitmine kept buying ETH on the way down, and now hold over 4.7% of global supply. That liquidation is what's holding price at $1585.29. Once the June reporting deadline passes, the selling should ease. Returning inflows can lift price to $1640, and if it holds there, $1680 opens up.

Crypto macro sentiment still hinges on spot ETF volatility. If outflows pick up again and price breaks below $1540, the recovery thesis is gone.