Tom Lee Predicts Ethereum Price Will Soon Rise to $5,500, $12,000 by the End of the Year – Is This Realistic?

Tom Lee, the chief investment officer of Fundstrat, has predicted that Ethereum will be bullish in the near future, reaching $5,500, with an ambitious year-end target of $12,000. In his guest appearance on the Amitis Investing program on August 26, Lee revealed that the sentiment among Wall Street institutions towards Ethereum has changed significantly after the U.S. Senate passed the GENIUS Stablecoin law. Lee emphasized that Ethereum is the foundational blockchain infrastructure for traditional finance (TradFi), which currently supports a stablecoin supply worth over $145 billion.

This significant market dominance is one of the main reasons why he considers ETH one of the biggest macro investment opportunities in the next decade. Tom Lee's Prediction About Ethereum Following BitMine's $7.65 Billion Treasury Bond Accumulation Strategy After Lee launched the ETH BitMine fund management company, a large amount of capital flowed into Ethereum. Investment managers and retail investors systematically reallocated capital from Bitcoin to Ethereum, with an average daily trading volume of 900 million dollars.

On June 30, when Tom Lee initiated BitMine's Ethereum accumulation strategy, the market capitalization of Ethereum increased by more than 255 billion dollars. Analyst Jeff Kendrick from Standard Chartered recently observed that ETH fund management companies are increasingly gaining strength in terms of capital flow compared to Bitcoin fund management companies. According to the regulatory arbitration point of view, Kendrick believes that these centralized treasury entities focusing on Ethereum have greater scalability potential compared to Bitcoin treasury companies. Tom Lee's internal analyst, who accurately predicted Ethereum's drop to $4,075 last week before rising to an all-time high of $4,900, has provided new analysis for BitMine's leadership. On August 26, Tom Lee predicted that the floor price of Ether would appear within a few hours, coinciding with the time BitMine Immersion Technologies purchased an additional 21.28 million USD worth of ETH, raising its total ETH holdings to 1.72 million USD, valued at 7.65 billion USD. This forecast aligns with the technical assessment of internal analyst Mark Newton, suggesting that Ethereum will move towards a new peak near $5,100 before targeting $5,500.

In a later interview with CNBC, Lee reinforced his prediction for ETH with a bold price target of $12,000 to $16,000 for Ether, while expressing his belief that "Ethereum is experiencing its Bitcoin 2017 moment." Tom Lee became known in 2017 when he appeared on CNBC to support a Bitcoin price target of $55,000, while the cryptocurrency was trading at $2,000. Wall Street experts initially thought his prediction was unrealistic. Currently, he is applying a similar belief in Ethereum and many investors are paying attention to his analysis. Ryan Adams, a cryptocurrency investor and analyst at Bankless, considers Lee's prediction about ETH to be absolutely extraordinary. He noted that Tom Lee has accumulated nearly 10 billion dollars worth of ETH in the past 50 days, accounting for about 1.4% of the total ETH supply.

If Lee achieves the accumulation target of 5% and ETH surpasses the $12,000 mark, Adams predicts that BitMine could surpass Strategy to become the largest publicly-held digital asset management company in the world. Large holders are currently taking advantage of the bullish momentum and capital inflow into Ethereum to reach new all-time highs. On-chain intelligence from Arkham reveals that nine whale addresses have recently purchased a total of 456.8 million dollars in Ether through BitGo and Galaxy Digital's over-the-counter trading services. Technical Analysis: Why Breaking Above $4,800 Could Trigger a Major Bullish Move for ETH According to technical analysis, the 1-hour ETH chart shows a short-term bullish trend with clearly defined key support levels. The recent price movement has recovered from the support zone of $4,200-$4,460, with additional buying positions established around the level of $4,500, indicating confident accumulation during the price decline. Chart analysis indicates that ETH is expected to break through the resistance zone of $4,950-$5,000 in line with the potential breakout target from the developing harmonic pattern.

Currently, ETH is consolidating around the $4,580 level after a pullback, while momentum indicators show a recent bullish crossover, indicating the potential for a continued recovery. As long as the demand zone maintains support during any pullback, the outlook remains positive. The next important resistance level is $4,950-$5,000. However, if the support level above $4,600 cannot be maintained, it may trigger a deeper correction before the next bullish effort.