Ethereum Bulls Face New Headwind: Rising Oil Prices Above $106

Fundstrat co-founder Tom Lee has identified a new challenge facing Ethereum (ETH) bulls, as surging crude oil prices have become the asset's biggest headwind in the near term.

WTI crude futures rose above $106 per barrel on Monday, with tensions and supply concerns driving the increase amid stalled US-Iran negotiations and disruptions near the Strait of Hormuz.

Lee pointed to an inverse correlation between Ethereum prices and oil prices, with ETH steadily declining over the past six weeks as WTI crude futures climbed.

The macro inflation fears driven by rising energy costs are weighing on appetite for risk assets like cryptocurrencies, according to Lee, but he maintained a bullish long-term outlook on Ethereum, citing tokenization and artificial intelligence as structural drivers.