Tom Lee Shifts From Gold to Crypto as Ethereum Gains in Wartime Markets
- Tom Lee says Ethereum has outperformed gold since the war began despite crypto’s slump.
- Ethereum fell below $2,000 as $104 million in long liquidations hit the market.
- Fundstrat data shows Ethereum beat Bitcoin, gold, and stocks since late February.
Tom Lee is urging investors to rethink traditional safe-haven positions as digital assets begin to recover during a period of geopolitical conflict. The Fundstrat head of research said crypto has looked stronger than gold since the war started, even after a deep marketwide selloff erased nearly $2 trillion in value since October.
His comments arrived as the Ethereum price remained under pressure in spot trading, despite its stronger relative performance since late February. Ether fell 2.38% over the last 24 hours to $1,993 at press time, slipping below the closely watched $2,000 level as traders tracked liquidation data, ETF flows, and weakening technical indicators.
Crypto Rebound Reshapes Safe-Haven Debate
Lee said the current pullback in digital assets has created what he described as a “money trade” for the next year. He argued that crypto has outperformed since the war began, while gold has underperformed during the same period.
The broader backdrop remains severe. Bitcoin is down 47% from its October peak, while Ethereum has fallen nearly 60% over the same stretch. Similarly, many memecoins have dropped more than 90%, highlighting the scale of the correction across the sector.
Still, Fundstrat’s March research report showed Ethereum up 17% on a relative basis versus the S&P 500 since the US-Israeli war on Iran began in late February. The report also said Ether outperformed Bitcoin, gold, real estate, MSCI World Energy, and Mag-7 technology stocks during that period.
Lee also acknowledged that markets remain difficult to navigate. He said the conflict with Iran, investor caution, and widespread misinformation have made positioning more challenging as many participants prefer to stay on the sidelines.
Ethereum Faces Pressure Despite Relative Strength
Even with improved relative performance, Ethereum’s spot market structure has weakened. ETHUSD broke below the $2,000 support level, marking a notable shift in market sentiment after repeated rejection near $2,200 earlier in the week.
Besides, market data showed more than $115 million in long liquidations over the last 24 hours, adding to price pressure. At the same time, demand indicators weakened as traders responded to lower conviction and softer market participation.
Institutional flows also turned negative. Spot ETH exchange-traded funds recorded $206.8 million in outflows across seven consecutive days, reducing a source of buying support that had previously helped steady the market.
Activity across decentralized markets also slowed. Declining decentralized exchange volumes and a falling ETH futures premium added to the bearish tone and reinforced the view that positioning had weakened.
Related: Trump Pledges to Crown U.S. the World’s Bitcoin Superpower and Crypto Hub
Technical Signals Point to Lower Support Zone
Technically, Ethereum’s daily chart reflected a softer structure across several indicators. The Relative Strength Index stood at 42, placing it in neutral territory but moving closer to oversold conditions below 30. The Moving Average Convergence Divergence also pointed lower.
The MACD line was at -9.70, below the signal line at 6.66, indicating downward momentum remained in place. Based on those readings, traders are watching the $1,900 to $1,800 range as the next major support zone. That area is being monitored for signs of buyer demand that could stabilize ETH’s price after the break below $2,000.
However, a failure to hold that zone would leave Ethereum exposed to a deeper move toward this year’s low near $1,747. For now, the contrast remains sharp: Ethereum has outperformed several major benchmarks during wartime markets, yet its immediate technical picture remains under clear pressure.
