Tom Lee, Fundstrat’s co-founder, has said the rising price of oil is a main reason why Ethereum’s recent sell pressure.
The following is a summary of the information that you will find on this page.
- Tom Lee says that higher crude oil prices are putting pressure on ETH, as the price of crude is nearing major 2026 highs.
- Crypto.news reports that ETF withdrawals, whale deposits and increasing reserves are adding to the near-term pressure on Ethereum supply.
- Lee pointed out that tokenization and AI-assisted agents will be the main drivers of future Ethereum demand.
Lee posted a message on X’s website, May 18, titled “In a post about X.” said ETH’s inverse correlation with oil has reached its highest point in history. According to him, rising crude prices are the biggest market headwinds for Ether in the short term.
Lee noted that the price of oil had climbed in recent weeks, whereas ETH was falling. A pullback in oil would help ETH recover, he said. He called the decision “short-term tactical noise” Tokenization and AI-powered agentic systems are said to be the two biggest drivers of Ethereum in 2026.
The rise in crude oil prices puts pressure on risky assets
On May 18, oil prices rose as Middle East tensions pushed energy markets higher. Brent crude touched $112 and WTI $108.70 as fresh regional attacks sparked supply concerns.
Ether was the oil that moved.ETHLive market data shows that the price of ) was around $2.115 on Monday, down from $2.115 yesterday, and an intraday minimum near $2.107. Energy prices are often higher, and this can lead to inflation fears. This in turn reduces demand for crypto.
Lee’s views are a shift from his previous Ethereum thesis. The April issue of crypto.news reported Lee said Ethereum was a good asset for wartime, and that it had performed better than Bitcoin or stocks in the Middle East conflict.
Other ETH Selling Factors Remain in Focus
The oil market is not Ethereum’s only concern. crypto.news reported Last week, Ethereum’s biggest whale Garrett Jin transferred 577.896 ETH valued at $1.35bn to Binance in four days. The transfer of funds from one exchange to another does not necessarily confirm the sale but may raise concerns about supply.
According to the report, Ethereum’s exchange reserves increased in subsequent days from 14.36m ETH (on May 5) to 14.95m ETH. On May 7, U.S. Ethereum ETFs suffered a net outflow of $103.6 Million, ending a run of four days in which they had seen inflows.
Lee is still focused on tokenization and AI in the long-term.
Lee explained that Ethereum’s story was still largely a result of tokenization and AI. Tokenization is a key theme in traditional finance. Banks and market infrastructure companies are testing products based on blockchain technology.
Latest crypto-news also showed Major firms are continuing to invest in this area. Fidelity International has launched a new tokenized fund. Previous reports had noted JPMorgan’s Ethereum-based, tokenized money fund filing.
AI payment is growing. crypto.news reported Pay.sh is a stablecoin-based payment gateway that Solana, Google Cloud and other partners have launched. This trend confirms Lee’s belief that AI-powered agents may lead to a rise in demand for crypto payment rails. However, ETH is still facing pressure from oil, ETFs and whales.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: crypto.news
