Ethereum Price Faces Selling Pressure as Oil Prices Climb

TLDR

• Tom Lee said rising oil prices have created short-term selling pressure on Ethereum.
• He stated that Ethereum’s inverse correlation with oil has reached its highest level.
• Lee described the recent weakness as short-term tactical noise rather than a shift in fundamentals.
• He reaffirmed that tokenization and agentic artificial intelligence support his long-term Ethereum outlook.
• Ethereum price fell 3.25% to $2,116.90 as the broader crypto market also declined.

Ethereum faced renewed selling as rising oil prices weighed on sentiment, according to Fundstrat’s Tom Lee. He linked recent weakness to macro pressure rather than weak fundamentals. Meanwhile, Ethereum traded near $2,116.90 after a 3.25% daily drop.

Ethereum Price Slides as Oil Rally Weighs on Sentiment

Tom Lee addressed Ethereum’s decline in a May 18 post on X. He wrote, “Rising oil prices is the biggest headwind.” He added that Ethereum’s inverse correlation with oil reached its highest level on record.

He explained that oil climbed during the past six weeks while Ethereum moved lower. Therefore, he argued that energy market strength pressured crypto sentiment. However, he described the weakness as “short-term tactical noise.”

Lee maintained that structural drivers continue to support Ethereum. He cited tokenization and agentic artificial intelligence as core themes. He stated, “These structural drivers are in place.”

He also said Ethereum could strengthen through 2026. Critics questioned his earlier statement that Ethereum had outperformed since the war began. Lee responded that macro factors shaped recent performance.

Earlier, Lee declared that “Crypto Spring has commenced.” He said Ethereum historically signals the end of crypto winters. He noted that no bear market ended without three consecutive monthly gains.

He added that a May close above $2,100 would confirm a bullish setup. He also shared long-term allocation data to support diversification claims. He said a 5% Ethereum allocation since 2016 turned $100,000 into about $1.7 million.

Ethereum Price Forecast Ties to Bitcoin and Market Structure

Lee outlined upside targets tied to Bitcoin price performance. He said, “If Bitcoin gets to $250,000,” Ethereum could reach $12,000 to $22,000. He based this range on a return to the 2021 ratio.

He also presented a higher scenario tied to payment infrastructure adoption. He suggested Ethereum could rise to $62,000 under that framework. He maintained that Ethereum delivered roughly 49,000% cumulative returns over ten years.

Lee’s prior forecast faced scrutiny after missing earlier targets. He predicted a bottom near $2,500 and a rally toward $9,000 by early 2026. Instead, prices remained under pressure.

He described the drop from $4,800 to $2,800 as an “engineered liquidation.” He argued that the decline did not change long-term value. Still, traders questioned the timing of his projections.

Meanwhile, market data reflected broad weakness across crypto assets. Ethereum fell 3.25% in 24 hours to $2,116.90. The overall crypto market capitalization declined 1.75%.

The Fear & Greed Index dropped to 39, signaling deeper fear. Ethereum’s market dominance slipped from 10.12% to 9.99%. Spot trading volume rose nearly 39% to $13.5 billion.

Bitcoin liquidations surged 328% to about $181 million. Ethereum showed higher volatility than Bitcoin during the session. The latest data confirmed continued selling pressure linked to macro conditions.

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