Fundstrat co-founder Tom Lee warned that a crash in the Korean stock market could exert additional selling pressure on Ethereum, as the country’s benchmark KOSPI index dropped more than 6% on October 13, 2026.
Tom Lee stated that selling in the Korean stock market could be transmitted to the cryptocurrency market through forced liquidations.
South Korea's KOSPI fell more than 6% intraday, triggering emergency trading controls during Tuesday's trading session.
According to CoinGecko data, Ethereum is trading near $2,530 after a 6.16% decline over the past 7 days.
BitMine purchased 12,532 ETH, increasing its disclosed holdings to 6,028,946 ETH, approximately 4.9% of the total Ethereum supply.
Ethereum's technical indicators show weakening momentum, with the $2,400 support and $2,600 resistance levels closely monitored.
He described the potential impact on Ethereum as "short-term pain," but did not provide specific price targets or estimate the potential scale of cryptocurrency liquidations.
Tom Lee warns that Ethereum may face additional selling pressure.
This warning came after a sharp decline in the Korean stock market, led primarily by major technology and semiconductor companies. Samsung Electronics and SK Hynitz experienced significant drops as investors expressed concerns over competition in the memory chip market and the financial outlook for AI infrastructure.
According to data from the Korean exchange, program trading on the KOSPI was halted for five minutes at approximately 9:48 a.m. Seoul time. The exchange activated the sell-side sidecar mechanism due to a decline of more than 5% in KOSPI 200 futures, triggering market control measures. The benchmark index opened down 3.1% and continued to widen its losses during the trading session.
During intraday trading, the KOSPI fell more than 6%, with Samsung and SK Hynix dropping nearly or over 8%. Meanwhile, U.S. tech stocks also declined, with the Philadelphia Semiconductor Index falling approximately 2.7% during Monday’s trading.
Lee’s concerns center on leveraged investors who may be forced to sell following sharp declines in their stock holdings. Korean brokers can liquidate positions when clients fail to maintain required margin levels. The co-founder of Fundstrat said investors facing these requirements may sell other assets, including cryptocurrencies, to raise cash.
However, Lee’s comments serve as a warning about potential financial contagion and do not imply that Korean margin liquidations have caused measurable Ethereum selling. He did not specify particular cryptocurrency exchanges, liquidation amounts, or trades directly linked to the stock market decline.
Ethereum's price is under pressure near the $2,500 support level.
After market pressures intensified again, Ethereum remains near $2,500, with prices fluctuating as traders assess the impact of stock market declines. According to CoinGecko, as of publication, ETH is trading near $2,526.74, with a 24-hour range between $2,411.24 and $2,557.96.
The previously provided price data for October 13 showed Ethereum trading at $2,529.79, with a 0.96% decline over 24 hours and a 6.16% decline over 7 days. Daily trading volume was approximately $15.79 billion, with a market capitalization estimated at $308.94 billion. A subsequent snapshot from CoinGecko showed trading volume nearing $15.91 billion and a market capitalization of approximately $308.61 billion.
This token has previously rebounded from a low of nearly $1,550 in June but remains below its high of approximately $2,800 in late September. The provided chart shows recent support between $2,400 and $2,450, with another potential support level at $2,200.
Resistance remains near $2,600, followed by the $2,750 to $2,800 range. A breakout above $2,600 would improve the rebound structure depicted on the chart; a break below $2,400 could see Ethereum retest lower support levels.
Meanwhile, crypto analyst Iko observed that Ethereum held the $2,500 level despite declining in the previous trading session. The analyst views $2,550 as the next level to watch but cautions that a rebound has not yet confirmed a breakout.
Another analyst, Ash Crypto, stated that Ethereum has been trading within a long-term range for nearly five years. He suggested that a significant upward move could occur if ETH breaks through its multi-year resistance level, though this assessment does not specify when such a breakout might happen.
BitMine increased its ETH holdings by 12,532 ETH, but the pace of purchases may slow down.
While Lee warned of potential short-term losses, Ethereum treasury firm BitMine Immersion Technologies disclosed that it purchased an additional 12,532 ETH for the week ending October 11. The company stated that its total holdings have reached 6,028,946 ETH, approximately 4.9% of Ethereum’s disclosed supply of 122.1 million ETH.
BitMine stated that it has completed approximately 99% of its goal to hold 5% of Ethereum's supply. Based on the company's referenced price of $2,544 per ETH, the value of its cryptocurrency holdings is approximately $15.3 billion. The company disclosed that, as of October 11, its total assets, including cryptocurrencies, cash, marketable securities, and other investments, amounted to $16.2 billion.
According to the company’s October 12 update, approximately 5.07 million ETH have been staked, representing the majority of its disclosed Ethereum holdings. BitMine describes its treasury strategy as focused on accumulating ETH and earning yields through Ethereum staking. The disclosed balance includes assets deployed in staking operations.
Management stated that the company has "essentially completed its ETH purchases," suggesting that buying pressure may slow as it approaches the 5% threshold. This statement does not mean BitMine has permanently ceased buying Ethereum; future transactions will still depend on management’s decisions.
BitMine's earlier Ethereum accumulation program set a 5% supply target as the company’s primary treasury goal. Lee stated in June that, once this threshold is reached, the business may no longer need to continue accumulating ETH.
Ethereum indicators show weakening buying momentum.
Despite recent price recovery, Ethereum’s technical indicators show weakening momentum. The daily chart places the Know Sure Thing indicator at 7.3727, below its signal line at 48.0863. The gap between the two suggests that prior upward momentum has diminished, even though both values remain positive.
The Awesome Oscillator reading is more bearish. The indicator stands at -101.7, remaining below the zero line, with negative bars indicating weaker short-term momentum compared to the longer-term trend. This reading aligns with the selling pressure observed during Ethereum’s recent decline.
To resume an upward move, the chart identifies $2,550 as the first level to watch, followed by resistance near $2,600. A sustained breakout above this range could bring the September trading range of $2,750 to $2,800 back into focus. These levels are technical reference points on the chart and are not guaranteed targets.
On the downside, the $2,400 to $2,450 range is viewed as the recent support zone. A sustained break below $2,400 would weaken the rebound structure and make $2,200 the next identified support level.
South Korea’s financial regulator has previously examined the risks associated with leveraged stock investments. Reports from July 2026 showed that margin loan balances reached KRW 38.63 trillion in June, while total investor debt exceeded KRW 60 trillion in May. These figures reflect the prior state of South Korea’s leveraged investment market and do not indicate the volume of forced sales that occurred during trading on October 13.
Disclosure: This article does not constitute investment advice. The content and materials on this page are provided solely for educational purposes.