Industry leader Tom Lee shared how the Ethereum price could reach $12,000 within months. He based his prediction on Bitcoin’s price action and how ETH could match the flagship crypto on potential upside.
Tom Lee explains how Ethereum’s price could rise to $12,000
Speaking at the Binance Blockchain WeekTom Lee predicted that Ethereum’s price could reach $12,000, while Bitcoin would rise to $250,000 within the next few months. He explained that ETH can reach the $12,000 target if the ETH/BTC ratio returns to the eight-year average of 0.0479. Lee described this potential rise to $12,000 as a ‘huge step’.
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Tom Lee further predicted that Ethereum price could reach $22,000 if the ETH/BTC ratio reaches its 2021 high of 0.0873. He added that he believes Ethereum will become the future of finance and payment rails. As such, Lee predicted that the ETH/BTC ratio could reach 0.2500, leading to a Ethereum rally up to as much as $62,500. In line with this, the expert stated that ETH is “highly undervalued” at $3,000.
Tom Lee also noted that the bigger the base, the bigger the breakout for the Ethereum price. He noted that ETH spent years building a similar base to its current price action before moving from $90 to the previous all-time high (ATH) of $4,866. The expert added that if the pattern plays out again, the next leg could be bigger than what people expect.
It is worth noting that Tom Lee is the chairman of BitMine, the largest Ethereum treasury company. According to Strategic ETH Reserve Datathe company currently owns 3.73 million ETH, which is just over 3% of the altcoin’s total supply. Lee remains optimistic about the Ethereum price despite his company having an unrealized loss of $3.3 billion in ETH investments.
A rally to $62,000 is ‘ambitious’
Market commentator Milky Way described Tom Lee’s Ethereum price prediction of $62,000 in a few months is ambitious. The platform stated that a ETH/BTC ratio of 0.25 has never happened. The highest rate ever has been 0.15, and that was during the 2017 super cycle, which makes it less likely now as market conditions have changed.
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Tom Lee had based his Ethereum prediction on this Bitcoin reaches $250,000that Milk Road also described as a problem. The market commentator noted that BTC would need to rise 177% from current prices to reach this target. The last time this happened was in 2020, when it rose from $7,000 to $19,000 during “peak mania.” Notably, BTC did not make 100% gains even when the Bitcoin ETFs were launched last year.
At the time of writing, the Ethereum price is trading around $3,000, down more than 4% in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Freepik, chart from Tradingview.com