Tom Lee predicted Ethereum at $20,000, saying BTC’s old cycle is over and ETH will lead the tokenized asset as long-term consolidation turns to the upside.
summary
- Tom Lee says Bitcoin’s classic four-year cycle is over and expects BTC to hit a new all-time high in early 2026 after tracking the S&P 500 in 2025.
- He argues that Ethereum is undervalued, has the potential to reach $20,000, and will underpin future tokenized securities and payments infrastructure.
- ETH has broken out of its 5-year range, the technicals indicate a W pattern, and the RSI movement suggests further upside despite short-term resistance.
Speaking at the Binance Blockchain Conference in Dubai this week, Fundstrat Global Advisors co-founder Tom Lee predicted that Ethereum could reach $20,000 based on the expected growth in asset tokenization.
Lee said Bitcoin’s traditional four-year cycle is over and predicted that the cryptocurrency will establish new highs in early 2026. We predicted that Bitcoin would track the performance of the S&P 500 stock index next year before reaching a significant price peak.
Tom Lee Announces Massive Rise in Ethereum
The analyst suggested that Ethereum will greatly benefit from this market environment, citing the increasing adoption of securities tokenization on Wall Street. Including layer 2 solutions and EVM-compatible platforms, the Ethereum network currently holds more than 70% market share of real-world asset tokenization value, according to data from RWA.xyz.
Lee pointed out that Ethereum (ETH) price has been in a range for five years, but has recently begun to break out of this pattern. He cited this extended integration period as a potential indicator of significant price movement, explaining the decision to transform Bitmine into an Ethereum treasury company.
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The executive characterized Ethereum as undervalued at current price levels and predicted that the network will become central to future financial infrastructure and payment systems.
According to blockchain analytics platform Lookonchain, BitMine made multiple Ethereum purchases this week, but the company has not officially confirmed the transactions. The exact purchase price was not disclosed.
A market analyst using the handle “Sykodelic” provided technical analysis suggesting that Ethereum could experience a price increase. The analyst noted that over the past five years, Ethereum has rallied significantly when the daily Relative Strength Index moves from overbought to oversold conditions before breaking the trend line.
Ethereum failed to break through the resistance level and fell during Asian trading hours. The cryptocurrency has risen in recent weeks, recovering from a double-dip formation and appears to be forming a W-shaped pattern on the price chart.
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