Ether Faces Selling Pressure as Rising Oil Prices Hit Crypto Market

Oil Surge Creates Strong Headwind for Ethereum Price

Ethereum has been under pressure in recent months as rising global oil prices continue to weigh on investor sentiment. Fundstrat co-founder Tom Lee said on X that higher crude oil prices have become the biggest factor behind Ethereum’s weakness, pointing to a strong inverse relationship between oil and ETH performance.

Since the US–Israel conflict began on February 28, crude oil has surged about 66%, rising from $65 to over $100 per barrel. On Monday, prices climbed further, with West Texas Intermediate reaching $102 and Brent crude touching $111 after renewed geopolitical tension around Iran and the Strait of Hormuz.

Lee noted that the inverse correlation between Ether and oil is currently at record levels. He said Ethereum’s recent sell-off intensified over the past week, with ETH falling nearly 10% and dropping to around $2,100, down roughly 57% from its all-time high.

Broader Macro and Market Pressure on ETH

Lee added that a drop in oil prices could support an Ethereum recovery, calling current volatility short-term “noise.” He believes long-term growth drivers such as tokenization and AI-based “agentic” systems still support Ethereum’s outlook.

However, other analysts say multiple factors are affecting ETH. Bitrue Research’s Andri Fauzan Adziima pointed to ETF outflows, rising exchange reserves, whale selling activity, and weaker risk sentiment as additional pressure points. Ethereum’s underperformance compared to Bitcoin has also added to negative momentum.

Despite short-term weakness, Ethereum remains dominant in real-world asset tokenization, holding more than 60% market share when layer-2 networks are included, with institutions like BlackRock and JPMorgan expanding activity on the network.