Industry chief Tom Lee has shared how the Ethereum price may attain $12,000 throughout the subsequent few months. He primarily based his prediction on the Bitcoin worth motion and the way ETH may match the flagship crypto on a possible run to the upside.
Tom Lee Explains How The Ethereum Price Could Rally To $12,000
Speaking on the Binance Blockchain Week, Tom Lee predicted that the Ethereum worth may attain $12,000 as Bitcoin rallies to $250,000 throughout the subsequent few months. He defined that ETH can attain the $12,000 goal if the ETH/BTC ratio returns to its eight-year common of 0.0479. Lee described this potential rally to $12,000 as a “huge move.”
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Tom Lee additional predicted that the Ethereum worth may attain $22,000 if the ETH/BTC ratio will get to its 2021 excessive of 0.0873. He added that he believes Ethereum will turn into the way forward for finance and the fee rails. As such, Lee predicted that the ETH/BTC ratio may attain 0.2500, sparking an Ethereum rally to as excessive as $62,500. In line with this, the knowledgeable declared that ETH at $3,000 is “grossly undervalued.”
Tom Lee additionally remarked that the larger the bottom, the larger the breakout for the Ethereum worth. He famous that ETH spent years constructing an analogous base to its present worth motion earlier than the transfer from $90 to its earlier all-time high (ATH) of $4,866. The knowledgeable added that if the sample performs out once more, the following leg may very well be bigger than what individuals anticipate.
It is value noting that Tom Lee is the chairman of BitMine, which is the most important Ethereum treasury firm. According to Strategic ETH Reserve data, the corporate at the moment holds 3.73 million ETH, which is simply over 3% of the altcoin’s whole provide. Lee stays bullish on the Ethereum worth, regardless of his firm holding an unrealized lack of $3.3 billion of their ETH funding.
A Rally To $62,000 Is “Ambitious”
Market commentator Milk Road described Tom Lee’s Ethereum worth prediction of $62,000 in a couple of months as being bold. The platform acknowledged that an ETH/BTC ratio of 0.25 has by no means occurred. The highest it has ever gone is 0.15, and that was in the course of the 2017 supercycle, which makes it much less probably now, on condition that market situations have modified.
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Tom Lee had primarily based his Ethereum prediction on Bitcoin hitting $250,000, which Milk Road additionally described as a difficulty. The market commentator famous that BTC would wish to surge 177% from present costs to succeed in this goal. The final time this occurred was in 2020 when it surged from $7,000 to $19,000 in the course of the “peak mania.” Notably, BTC didn’t report a 100% acquire even when the Bitcoin ETFs launched final 12 months.
At the time of writing, the Ethereum worth is buying and selling at round $3,000, down over 4% within the final 24 hours, in keeping with data from CoinMarketCap.
Featured picture from Freepik, chart from Tradingview.com
