Tom Lee says Ethereum could become the AI era settlement layer as Bitmine holds 5.74M ETH and targets 5% of supply.
Ethereum is trading near $1,777.90 on Bitstamp after recovering from recent lows. However, ETH still remains below the key $2,120.70 Fibonacci resistance level.
On the charts it shows early recovery signs, but the wider structure has not confirmed a full bullish reversal. Buyers still need a stronger move above resistance to shift the setup.
Analyst Ted said Ethereum has liquidity clusters on both sides of the current price range. He placed upside liquidity between $1,800 and $2,100, with downside liquidity near $1,200 to $1,400.
The technical setup comes as Tom Lee says Ethereum may be near a major bottom. He has also linked ETH’s long-term case to AI settlement, Robinhood Chain, and Bitmine’s growing stake.
ETH Rebound Faces Key Resistance
Ethereum’s first resistance sits near $2,000, which remains a psychological price level. A daily close above this area could bring $2,120.70 into focus.
The $2,120.70 level marks the lower end of the larger Fibonacci range on the chart. Until ETH reclaims this zone, the broader market structure remains cautious.
If buyers push ETH above $2,120, the next resistance sits near $2,592. Higher Fibonacci levels are placed near $2,962, $3,222, $3,482, and $3,803.
On the downside, immediate support appears near $1,700 to $1,650. A break below that range could weaken the current recovery attempt.
Liquidity Zones Shape Short-Term Outlook
Ted said Ethereum has short-side liquidity between $1,800 and $2,100. In simple terms, this area may contain orders linked to traders betting against ETH.
He said ETH may tap the upside liquidity before facing another selloff. That view suggests price could move higher before testing lower levels again.
$ETH has decent liquidity clusters on both the upside and downside.
On the upside, there's short-side liquidity from the $1,800-$2,100 level.
On the downside, there's a long-side liquidity around the $1,200-$1,400 level.
IMO, Ethereum will tap the upside liquidity first, and… pic.twitter.com/hFfdGoZvjl
— Ted (@TedPillows) July 12, 2026
Ted also placed long-side liquidity around the $1,200 to $1,400 zone. This area may become important if ETH loses support after an upside move.
However, liquidity maps do not confirm future price direction. They show possible areas where market activity may increase.
Read also: Ethereum Price Analysis: Key $1.4K–$1.6K Zone in Focus as Rally Looms
Tom Lee Thesis Adds Long-Term Focus
Tom Lee said Bitcoin could trade above $100,000 by year-end. He also said Ethereum could return above $5,000 in the same period. His view places ETH’s recovery inside a wider crypto market test.
TOM LEE: BITCOIN OVER $100,000 AND ETHEREUM BACK OVER $5,000 BY YEAR END
He sets a clear test for whether the crypto thesis still holds:
– He sees Bitcoin above $100,000 and Ethereum back over $5,000 by the end of the year
– Bitcoin has been down three quarters in a row but… pic.twitter.com/DFtUka0UrN— Tom Lee Tracker (Not actually Tom) (@TomLeeTracker) July 12, 2026
Lee said Bitcoin has fallen for three straight quarters before. However, he said it has never fallen for four straight quarters. He described a June-to-September bounce as a test for the crypto thesis.
Lee also said Ethereum could become the settlement layer for the AI era. A settlement layer confirms and records transactions across a blockchain network.
He cited institutional adoption, Robinhood Chain, and favorable macro trends as supporting factors. These themes remain separate from short-term price resistance and liquidity risks.
Lee also said Bitmine holds 5.74 million ETH, equal to 4.8% of total supply. He added that Bitmine plans to raise its stake toward 5% while investing across Ethereum’s ecosystem.
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