Industry expert Tom Lee has indicated that the Ethereum price might reach $12,000 in the coming months. His forecast is grounded in Bitcoin’s price movements and suggests that ETH could mirror the leading cryptocurrency during a potential upswing.
Tom Lee Discusses How Ethereum Could Surge To $12,000
While speaking at the Binance Blockchain Week, Tom Lee predicted that Ethereum could reach $12,000 if Bitcoin climbs to $250,000 in the next few months. He elaborated that this price target for ETH could be achieved if the ETH/BTC ratio returns to its eight-year average of 0.0479. He referred to this potential rally to $12,000 as a significant move.
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Lee further forecasted that the price of Ethereum could reach $22,000 if the ETH/BTC ratio climbs to its 2021 peak of 0.0873. He expressed his belief that Ethereum will play a pivotal role in the future of finance and payments. Consequently, he predicts that the ETH/BTC ratio could rise to 0.2500, triggering an Ethereum rally that may propel prices as high as $62,500. In this context, he noted that an ETH price of $3,000 is “grossly undervalued.”
Lee also pointed out that a broader base could lead to a more substantial breakout for Ethereum’s price. He noted that ETH has spent years developing a foundation similar to its current price trajectory before its previous all-time high (ATH) of $4,866. He suggested that if this pattern repeats, the next upward movement could exceed expectations.
It’s important to note that Tom Lee chairs BitMine, the largest Ethereum treasury company. Data from Strategic ETH Reserve reveals that the company holds 3.73 million ETH, accounting for just over 3% of the altcoin’s total supply. Despite an unrealized loss of $3.3 billion on their ETH investments, Lee remains optimistic about Ethereum’s price.
A Rally To $62,000 Is “Ambitious”
Market commentator Milk Road remarked that Lee’s projection of an Ethereum price of $62,000 in a few months is quite ambitious. The platform noted that an ETH/BTC ratio of 0.25 has never been reached, with the highest being 0.15 during the 2017 supercycle, making it less probable now due to changed market dynamics.
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Lee grounded his Ethereum prediction on the assumption of Bitcoin reaching $250,000, which Milk Road highlighted as a concern. The commentator noted that BTC would need to increase by 177% from its current value to achieve this mark. Such growth last occurred in 2020, when BTC surged from $7,000 to $19,000 during “peak mania.” Notably, BTC did not experience a 100% gain even during the Bitcoin ETFs’ launch last year.
As of the time of this writing, Ethereum is trading around $3,000, having fallen over 4% in the last 24 hours, as per data from CoinMarketCap.
Featured image from Freepik, chart from Tradingview.com
