Ethereum's Latest Rally May be Just The Beginning

$ETH posted a 30% gain in the past week, its largest weekly advance since May 2025, and before that, July 2021. For Fundstrat's Tom Lee, the move is less a one-off surge and more a signal of what could come next.

Lee Points to History and Macro Tailwinds

Lee has argued that the pattern matters. The previous two comparable weekly rallies, in July 2021 and May 2025, were subsequently followed by gains of 167% and 170%, respectively. In his view, the current move fits the same setup. Lee also said he expects easing financial conditions to be a tailwind for crypto, adding another potential catalyst to his Ethereum thesis.

Beyond macro conditions, Lee has flagged two structural drivers he sees as particularly relevant for $ETH. He believes the next cycle could be driven by Wall Street moving traditional assets onto blockchains and autonomous AI systems using Ethereum for transactions. Lee described tokenization as "a structural theme and one set to benefit crypto," and stated that agentic AI could provide another major catalyst. Lee named Ethereum an unexpected leader of the next leg higher, alongside the Magnificent Seven and software stocks.

Bitmine's Position Keeps Growing

Lee serves as chairman of Bitmine Immersion Technologies, an Ethereum treasury firm he is closely associated with. As of August 23, 2026, the company's crypto holdings comprised 5,847,611 ETH at $2,440 per ETH. Bitmine controls about 4.8% of Ethereum's 120.7 million token supply. Combined crypto, cash, and strategic holdings totalled $14.9 billion.

Total staked ETH stands at 5,067,309, valued at $12.4 billion at $2,440 per ETH, making Bitmine the largest ETH staker in the world by that measure. At full scale, the projected ETH staking reward is $381 million on an annualised basis, using a 2.67% 7-day yield, with annualised staking revenues now projected at $330 million.

The firm has completed 97% of its so-called "Alchemy of 5%" strategy, with the ultimate goal of controlling 5% of the ETH supply, an ambition it began pursuing in late June 2025. Bitmine's crypto holdings rank as the number one Ethereum treasury and number two global crypto treasury, behind Strategy Inc.

Sources:
Bitmine Press Release: ETH Holdings Reach 5.85 Million Tokens (PR Newswire, August 2026)
Tom Lee Spots Good Sign as Ethereum ETFs Buy $189M (Yahoo Finance)
Bitmine Nears Massive Ethereum Milestone as ETH Holdings Reach 5.85 Million (CryptoPotato)