Tom Lee Says ETH/BTC Breakout Signals Crypto Turning Point in Second Half of 2026

TLDR

• Ethereum climbed to 0.02858 BTC this week, breaking above a multi-week resistance level
• Ethereum ETFs pulled in over $128 million in net inflows so far this month, outpacing Bitcoin
• Robinhood’s new Layer 2 chain uses ETH as its gas token and settles on Ethereum Layer 1
• ETH bridged to the Robinhood chain jumped nearly 10x in one week, surpassing $100 million
• Tom Lee says the ETH/BTC breakout signals a broader crypto turning point tied to stablecoins, tokenization, and an “ETH as money” narrative

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Ethereum has broken above a resistance level against Bitcoin that held since June, with the ETH/BTC ratio climbing to 0.02858. The move has drawn attention from analysts and investors watching whether this signals a lasting shift or another short-term bounce.

Tom Lee, chairman of Bitmine, called the breakout a sign that crypto is turning a corner. He points to growth in stablecoins, tokenization, and new Ethereum-based projects as supporting factors. He also cited falling oil prices and progress on the CLARITY Act as tailwinds.

As 2H 2026 starts, a key ratio is $ETH / $BTC price ratio

– given growth in stablecoins, tokenization, new @ethereum spinoffs
– these favor this ratio rising

macro should be on balance friendlier
– oil declines = less inflation
– crypto still a downstream story to AI
– Clarity… pic.twitter.com/jzAOUADqv0

— Bitmine (NYSE-BMNR) $ETH (@BitMNR) July 2, 2026

Lee has tracked the ETH/BTC ratio for months as a broader market indicator. His view is that the “ETH as money” narrative will gain traction in the second half of 2026.

Institutional Money Is Moving Into Ethereum

Ethereum ETFs have attracted over $128 million in net inflows so far in July, outperforming Bitcoin ETFs over the same period. This suggests institutional players are actively increasing their exposure to Ethereum.

Bitmine has been accumulating Ether through what Lee described as a heavy buying phase. He recently indicated that aggressive accumulation phase is nearing its end.

Bitcoin dominance has also been rising, gaining 1.5% in July and pushing toward the 60% resistance level. That signals some capital may still be flowing back toward Bitcoin rather than away from it.

The ETH/BTC pair is still down 7.72% over the past three months, even after this week’s bounce. Spot Ether funds also posted a seven-week outflow streak in late June, a trend that has only partially reversed.

Robinhood’s Layer 2 Chain Adds a New Demand Driver

A key catalyst behind Ethereum’s recent strength is Robinhood’s newly launched Layer 2 blockchain. The network uses ETH as its native gas token and settles transactions on Ethereum’s base layer.

Lee described it as a breakout product that has already generated more volume than many established decentralized exchanges. As activity grows on the chain, demand for ETH increases with it.

On-chain data shows the amount of ETH bridged from Ethereum’s base layer to the Robinhood chain jumped nearly 10x in one week, surpassing $100 million. Users are moving real liquidity into the ecosystem.

This is a concrete, measurable demand source for ETH, tied to actual transaction activity rather than speculation alone.

Ethereum’s Q3 2025 ETH/BTC rally surged 53% before sellers erased half those gains. The current 5% Q3 2026 rally is smaller, but supported by more on-chain activity and institutional inflows than previous moves.

Whether the breakout holds through the rest of 2026 will determine if Lee’s recovery call was well-timed or premature.