The Crypto Desk desk. Editor: Sam Daodu.
Tom Lee of Fundstrat has highlighted three external factors behind the cryptocurrency selloff, and Ethereum (CRYPTO:ETH) is feeling that pressure more than Bitcoin (CRYPTO:BTC). On November 14, Lee posted on X that “Crypto has been under intense selling pressure the last few weeks.”
Ethereum is trading at about $1,809, down 1.6% in 24 hours and 19.2% over the past week. Its closing price of $1,768 on November 14 was its lowest daily close in 90 days, and the cryptocurrency has plummeted 39% this year. So, do Lee’s identified causes of the crash make sense, and what do they mean for Ethereum holders?
Tom Lee Blames Chip-Stock Margin Calls, Anthropic’s IPO and a Binance Hack
Lee listed three primary reasons for the decline, all stemming from influences outside the crypto space.
- Margin calls from chip-stock sell-offs. The market for AI and chip stocks, such as NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), has seen a significant sell-off, leading to margin calls, especially among retail traders in Asia. A margin call occurs when a broker demands more funds from investors who borrowed to trade, and those unable to pay may sell other assets, including cryptocurrencies.
- A supply shock from the Anthropic IPO. The upcoming initial public offering for Anthropic, a large AI company, can divert cash away from speculative assets. Investors pulling cash together for a big IPO sometimes sell their crypto holdings to fund their purchases.
- Selling after the Binance hack. After the $6.3 billion hack at Binance, funds are being returned to affected account holders, who may convert them into cash and add to the selling.
Despite the decline, Lee remains optimistic, stating, “The headwinds shall pass.” He didn’t give a price target, but he said crypto fundamentals “have been mostly positive,” pointing to banks announcing use of crypto and blockchains, though prices haven’t followed. Lee also chairs BitMine Immersion Technologies (NYSE:BMNR), which is closing in on 5% of all Ethereum, so his optimism comes from someone whose company rises and falls with the coin.
Margin Calls Fit the Selling Best
Among the reasons Lee mentioned, the margin call issue seems best supported, since the selloff hit multiple cryptocurrencies at once. Over the past week, Bitcoin dropped 14.9%, and Solana (CRYPTO:SOL) fell 20.6%. Forced selling tends to hit the most volatile assets the hardest, which fits Ethereum’s and Solana’s bigger drops, though the data can’t confirm that Asian retail traders did the selling.
Data shows that U.S. spot Ethereum funds saw net outflows of $398.9 million from November 9 to 13, according to SoSoValue. While these funds still hold $10.85 billion, the outflows suggest that selling pressure extended beyond just retail traders in Asia.
The Anthropic IPO’s influence is more challenging to measure. While reports in October said the new-stock market stalled as investors waited for the listing, fund-flow data doesn’t clearly show money moving from Ethereum to Anthropic.
As for the Binance hack, it’s difficult to tell how much of the returned funds were sold off. The $6.3 billion figure reflects the total loss from the hack, not the sales that might have occurred afterward.
Ethereum Faces a Seller Lee’s List Leaves Out
Another factor Lee didn’t mention is a transaction linked to the Ethereum Foundation. Blockscout records show that on November 14, a foundation-linked wallet created an order to sell 2,500 ETH, valued at about $4.5 million. Because the foundation supports Ethereum’s development, such sales can raise concerns among holders.
The chart looks weak, too, as Ethereum trades below its 20-day, 50-day, and 200-day moving averages of $2,189, $2,396, and $2,145, respectively. In comparison, Bitcoin has fallen 25.9% this year, while Ethereum has fared worse with a 39% decline, a gap our look at why Ethereum falls harder explains.
Lee’s $6,000 Ethereum Target Needs Bitcoin at $150,000 First
Lee’s Ethereum targets suggest it needs a stronger Bitcoin market to recover. In September, he set a year-end target of about $6,000 for Ethereum, contingent on Bitcoin reaching $150,000 and an Ethereum-to-Bitcoin ratio of 0.04. That ratio is near 0.028 with Bitcoin around $64,664, so Bitcoin needs to gain 132% for Lee’s target to be met.
Lee’s long-term outlook includes a potential $62,000 Ethereum price if Bitcoin hits $250,000, with Ethereum valued at a quarter of Bitcoin’s price. Such forecasts, while ambitious, must be weighed against published expectations, which our look at what one Ethereum could be worth by 2030 lays out.
On November 10, Lee called Ethereum’s price poor but maintained a bullish view over a longer timeframe of 24 to 36 months. That longer window gives his view room, since Ethereum trades 63.4% below its all-time high of $4,946 from August 24, 2025.
What Does Tom Lee’s Crash Call Mean for Ethereum Holders?
Lee’s analysis highlights factors contributing to the broader crypto selloff, though it doesn’t fully explain why Ethereum has fallen more sharply. For holders, his post accounts for the drop but leaves the timing of any rebound open, since his recovery view rests on the Anthropic listing clearing, the Binance refunds finishing, and Bitcoin climbing to $150,000.
Selling could ease if U.S. spot Ethereum funds swing back to weekly net inflows and Ethereum closes above its 200-day average of $2,145, about 19% higher, after the Anthropic listing. If Ethereum instead closes below its $1,768 November 14 close, about 2% lower, the selling likely has a cause Lee’s list doesn’t name.
Contact [email protected] for any questions or corrections.
Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
