Tom Lee says oil prices are Ethereum’s biggest headwind.

According to Tom Lee, co-founder of Fundstrat, since the US-Israeli war, the increase in oil prices has been a consistent weight on the price of Ether for the past three months.

“If anyone is wondering why Ethereum was under selling pressure… for me, the oil price increase is the biggest headwind,” Lee said. he said. At X on Monday.

Lee said that the inverse correlation between ether prices and oil is at a high level. Crude oil prices rose 66 percent from $65 a barrel. More than 100 dollars per barrel Since the start of the American-Israeli war Starting February 28th.

They rallied again on Monday as WTI hit $108 and Brent crude hit $111 after US President Donald Trump. he said. “The clock is running out” for Iran to make an agreement to open the Strait of Hormuz on Sunday.

A protracted war between the US and Iran could weigh heavily on Ether, which has largely traded sideways during the conflict. The sell-off accelerated last week and the asset fell nearly 10% to $2,100 on Monday, down 57% from its all-time high.

Ether and oil reversibly bond to a high degree. Source: Fundstrat

The fall in oil prices shows the recovery of ETH

Lee said that a change in oil prices would cause ETH's price to recover, describing the current situation as “short-term tactical noise.”

He said the biggest drivers for Ether are tokenization and Agent AI. “These structural drivers are in place. Therefore, we expect the ETH price to be even stronger as we go through 2026.”

Related: Ethereum Foundation Hits ‘Glamsterdam' Milestones, Names New Protocol Leaders

With over 60% market share when layer-2 networks are included, Ethereum remains the dominant network for real-world asset tokens. Meanwhile, major financial institutions such as BlackRock and JPMorgan have recently launched tokenized funds on Ethereum.

The agency AI narrative stems from the prediction that AI payment agents will not be able to access bank accounts, so they will Use crypto tokens For payments like ETH or stablecoins.

Ether prices are experiencing multi-level pressure.

However, Ether is under pressure from other macroeconomic headwinds, as its correlation with risk assets means it gets hit harder during sell-offs.

Andri Fauzan Adziima, head of research at Bitrue Research Institute, told Cointelegraph on Monday that it is not just the price of oil that affects Ether and that there is a “multi-level pressure”.

“They are a key macro headwind, but ETH selling pressure is also driven by ETF withdrawals, rising currency stocks/selling whales, broader risk-off sentiment and ETH's underperformance against Bitcoin,” he said.

Related: ETH Stands Five Times at $2.4K, SOL to Rally to $120: Market Actions