Ethereum could face further selling pressure after a sharp decline in South Korean stocks, according to Fundstrat co-founder Tom Lee.
His warning came as the KOSPI fell more than 6% during trading on October 13, prompting temporary restrictions on program trading. Lee suggested that investors facing margin calls on their stock positions might sell cryptocurrencies to raise cash.
Ethereum was trading around $2,530 in the price readings cited in the report, following a weekly decline of 6.16%.
Tom Lee Flags Risk From Margin Calls
Lee’s concern centers on investors who borrowed money to purchase shares. When stock prices fall sharply, those investors may need to provide additional collateral or face forced liquidation by their brokerages.
With South Korea’s strong participation in cryptocurrency trading, Lee warned that the pressure could extend beyond equities. Investors trying to cover stock-market losses might sell digital assets, including Ethereum.
He described the potential impact as “short-term pain” but did not provide an Ethereum price target or estimate how much cryptocurrency could be sold.
His comments outline a possible spillover risk. They do not establish that South Korean margin calls have already caused identifiable Ethereum sales.
The stock-market decline was led by technology and semiconductor companies, including Samsung Electronics and SK Hynix. Their shares fell sharply amid concerns about memory-chip competition and the financial outlook for artificial intelligence infrastructure.
According to the Korea Exchange figures cited in the report, a sell-side sidecar temporarily suspended program trading at approximately 9:48 a.m. local time after KOSPI 200 futures crossed the required decline threshold.
Ethereum Trades Near $2,500 as Recovery Stalls
CoinGecko price snapshots cited in the report placed Ethereum between approximately $2,527 and $2,530. Its reported 24-hour trading range stretched from $2,411 to $2,558.
Although ETH had recovered from June lows near $1,550, it remained below its late-September highs around $2,800.
The accompanying technical analysis identified $2,400–$2,450 as the nearest support area, with $2,200 as another level to watch if that range fails.
On the upside, $2,550 was highlighted as an initial recovery checkpoint, followed by resistance near $2,600. A sustained move above that region could bring the $2,750–$2,800 area back into focus.
Crypto analyst Iko said Ethereum was defending $2,500 after the previous session’s decline but noted that the rebound had not yet delivered a confirmed breakout.
Separately, Ash Crypto outlined a longer-term bullish scenario if Ethereum clears its multiyear resistance. That assessment did not establish when, or whether, such a breakout would happen.
BitMine Adds Ethereum but Signals Slower Purchases
Despite the uncertain market backdrop, BitMine Immersion Technologies reported buying another 12,532 ETH during the week ended October 11.
The purchase increased its reported holdings to 6,028,946 ETH, equivalent to approximately 4.9% of the 122.1 million-token supply used in its calculation. The company said it was around 99% of the way toward its goal of holding 5% of Ethereum’s supply.
At BitMine’s reference price of $2,544 per ETH, its cryptocurrency holdings were valued at approximately $15.3 billion. Combined cryptocurrency, cash, marketable securities and other investments totaled a reported $16.2 billion.
Around 5.07 million ETH was staked, representing most of its Ethereum treasury.
Management indicated that BitMine was largely finished buying ETH as it approached its target. This suggests purchases could slow, although it does not confirm a permanent end to accumulation.
Technical Indicators Point to Weaker Momentum
The daily chart supplied with the report showed Ethereum’s Know Sure Thing indicator below its signal line, suggesting that the earlier upward momentum had weakened.
The Awesome Oscillator was also below zero, consistent with weaker short-term momentum relative to the longer-term trend.
These readings add caution to the recovery outlook, but they do not guarantee another decline. The support and resistance levels remain reference points rather than certain price targets.
Ethereum now faces two questions: whether pressure in South Korean equities will translate into additional crypto selling, and whether buyers can sustain a recovery above nearby resistance. Lee’s warning highlights the first risk, while the price chart shows that the rebound still needs confirmation.
