Industry Leader Shares Why Ethereum Price Will Reach $12,000
Industry leader Tom Lee has shared how could reach $12,000 within the next few months. He based his prediction on the Bitcoin price action and how ETH could match the flagship crypto on a potential run to the upside.
Tom Lee Explains How The Ethereum Price Could Rally To $12,000
Speaking at the , Tom Lee predicted that the Ethereum price could reach $12,000 as Bitcoin rallies 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 its eight-year average of 0.0479. Lee described this potential as a “huge move.”
Tom Lee further predicted that the Ethereum price could reach $22,000 if the ETH/BTC ratio gets to its 2021 high of 0.0873. He added that he believes Ethereum will become the future of finance and the payment rails. As such, Lee predicted that the ETH/BTC ratio could reach 0.2500, sparking an to as high as $62,500. In line with this, the expert declared that ETH at $3,000 is “grossly undervalued.”
Tom Lee also remarked 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 the move from $90 to its previous of $4,866. The expert added that if the pattern plays out again, the next leg could be larger than what people expect.
It is worth noting that Tom Lee is the chairman of BitMine, which is the largest Ethereum treasury company. According to , the company currently holds 3.73 million ETH, which is just over 3% of the altcoin’s total supply. Lee remains bullish on the Ethereum price, despite his company holding an unrealized loss of $3.3 billion of their ETH investment.
A Rally To $62,000 Is “Ambitious”
Market commentator Tom Lee’s Ethereum price prediction of $62,000 in a few months as being ambitious. The platform stated that an of 0.25 has never happened. The highest it has ever gone is 0.15, and that was during the 2017 supercycle, which makes it less likely now, given that market conditions have changed.
Tom Lee had based his Ethereum prediction on , which Milk Road also described as an issue. The market commentator noted that BTC would need to surge 177% from current prices to reach this target. The last time this happened was in 2020 when it surged from $7,000 to $19,000 during the “peak mania.” Notably, BTC didn’t record a 100% gain even when the Bitcoin ETFs launched last year.
At the time of writing, the Ethereum price is trading at around $3,000, down over 4% in the last 24 hours, according to from CoinMarketCap.
