Ethereum: The recent rebound may only be the beginning
Ether rose 7.46% to $2,619 after the release of US inflation data. Tom Lee points to the possible start of a "brutal rally," but his view covers risky assets in general and gives no specific ETH price target.
A huge, personified Ethereum coin has reached the top of its first financial mountain after a hard climb. In the foreground, a trader celebrating the rebound suddenly freezes, mouth open. Beyond the first peak stands a far larger mountain, with a bright path rising high into the sky.
In short
Ether climbed 7.46% to $2,619 after the US inflation report. Tom Lee sees the chance of a sharp rally in risky assets but gives no ETH target. BitMine holds 5.93 million ETH, equal to 4.9% of the supply used in the company's filings. The company has staked 5.07 million ETH and keeps buying each week. Inflation and Federal Reserve policy will help determine whether the move continues.
Ether rises after US inflation data
Ether gained 7.46% during the September 11 trading session and closed near $2,619. Its weekly gain reached 6.62%, following several days in which investors had taken a cautious stance.
The market responded to new US Consumer Price Index figures. Annual inflation reached 3.4% in August, matching forecasts. Monthly prices rose 0.4%, while core inflation increased 0.3%.
The main figures place Ether's rebound in context:
ETH reached $2,619 after gaining 7.46% in one day. Its seven-day increase was 6.62%. US inflation came in at 3.4% year over year in August. Core inflation rose 0.3% over the month.
Investors had reduced risk before the report came out. Since the figures brought no negative surprise, buyers returned to cryptocurrencies. Short sellers also closed positions to reduce losses, adding more buying pressure.
Traders often call this a "face-ripper rally." Prices rise quickly, catching sellers off guard and forcing them to buy back their positions. That extra demand can push the move higher.
Tom Lee's view covers more than Ethereum
Tom Lee, Fundstrat co-founder and BitMine chairman, says heavy caution in the market could set the stage for a sharp rebound. Before the inflation report, Fundstrat wrote that "a less negative result could trigger a significant rise" in a note about investor positioning.
That comment was not an Ethereum-only forecast. Fundstrat's view covers stocks and cryptocurrencies more broadly. Ether became linked to the statement because of its recent rise and Lee's direct role at BitMine.
Lee did not give an ETH price target or name a technical level that would confirm a lasting recovery. The latest move could be a relief rally rather than the start of a fresh bull market.
Persistent inflation remains a risk. If prices keep rising, the Federal Reserve may hold rates high for longer or raise them again. That could pressure assets without fixed returns, including cryptocurrencies.
BitMine now holds 4.9% of the ETH supply
Lee's position draws attention because he chairs BitMine, the largest corporate holder of Ether. As of September 7, the company held 5.93 million ETH, equal to 4.9% of the supply cited in its SEC filing.
BitMine had staked 5.07 million ETH, or almost 85% of its holdings. The company estimates annual income from staking at $330 million, based on a 2.61% yield. That figure is a projection and will change with ETH's price and network yields.
Lee said, "BitMine has been buying ETH every week since launching its cash strategy on June 30, 2025." The company bought another 28,086 ETH during the week before the announcement.
These purchases reduce the Ether available for immediate trading, especially when the coins are staked. They do not guarantee higher prices. Demand from investors, Federal Reserve policy, and broader market conditions will still drive the next move.
Ether's rise to $2,619 supports the case for a short-term relief rally. A lasting climb will need continued spot buying, including purchases by BitMine, along with a less restrictive monetary setting.