Tom Lee Warns Ethereum's Accumulation Could Slow Without Shareholder Approval

Ethereum is currently trading at around $3,150 after experiencing a three-day decline that erased earlier gains this month. The price action reflects a broader market dynamic where institutional and retail participants are recalibrating positions ahead of potential catalysts this year.

Tom Lee, managing director at BitMine, has highlighted a critical upcoming decision: the company's attempt to increase its share capacity from 500 million to 50 billion could allow for further Ethereum accumulation. Without shareholder approval, BitMine will likely be forced to slow its aggressive buying strategy, which has added 4.14 million ETH to its holdings since the start of the year.

The firm's accumulation strategy is part of a broader institutional narrative supporting Ethereum. BitMine aims to eventually hold 6 million ETH, with the potential to exceed that target if share authorization is approved. This institutional confidence contrasts with ETH's recent price pullback, which dropped the token below its $3,300 high earlier this month.

Why Did This Happen?

Ethereum's price has been volatile amid a broader market shift in 2026. Institutional and macroeconomic factors, including ETF inflows and regulatory developments like the CLARITY Act, are playing a growing role in ETH's price action.

BitMine's purchasing strategy has been a key bullish factor. In the last 30 days alone, the firm added 278,551 ETH to its treasury. The firm's ability to continue this strategy is now contingent on a shareholder vote, which could delay the pace of Ethereum's long-term accumulation.

How Did Markets React?

The broader Ethereum ecosystem is showing growth in key areas such as real-world asset tokenization and DeFi. Ethereum's market share in RWA tokenization has reached $12 billion, and major institutions including JPMorgan have launched tokenized products on the network.

Institutional activity is also supported by Ethereum's upcoming upgrades, including the Glamsterdam and Hegota upgrades later this year. These upgrades are expected to improve network efficiency, reduce node storage requirements, and address MEV centralization risks, all of which could support a price rebound.

Technical indicators suggest that Ethereum remains in an uptrend, despite recent volatility. The price has moved above the 23.6% Fibonacci Retracement level and is forming an ascending triangle pattern on the 12-hour chart. A move above $3,478 could confirm the continuation of the bullish trend.

The RSI is in the neutral zone at 53.67, and the MACD histogram has turned positive, reinforcing the trend's strength. However, the Supertrend indicator remains bearish, signaling caution for short-term traders.

What Are Analysts Watching Next?

Analysts are closely monitoring Ethereum's behavior at key support and resistance levels. The strongest support is at $3,082.64, and a breakdown below that level could trigger a deeper correction. Conversely, a sustained move above $3,286 could signal a new wave of institutional buying and ETF inflows.

Arthur Hayes, former BitMEX founder, has projected ETH could rise to $20,000 by 2026, driven by institutional adoption and Ethereum's role as a public settlement layer. He expects Ethereum's Layer-2 infrastructure to fill privacy gaps until the core network evolves.

Standard Chartered has also raised its price targets for Ethereum, predicting $7,500 by the end of 2026 and $25,000 by 2028. These forecasts are based on the bank's view of Ethereum's expanding role in stablecoin issuance and settlement infrastructure.

The market is also watching for further regulatory clarity and macroeconomic shifts. The Federal Reserve's interest rate cuts and the passage of the CLARITY Act could provide additional tailwinds for Ethereum's long-term adoption.

In the short term, Ethereum remains in a consolidation phase, with volume and volatility expected to increase as the market seeks a breakout direction. Traders are advised to monitor key levels and maintain disciplined risk management as the asset remains in a transition period.