Tom Lee, of Fundstrat Global Advisors, has issued a new Ethereum price prediction. Speaking on CNBC’s ‘Last Call’ program, the prominent analyst noted a bullish $5,000 target for ETH. However, this scenario hinges on a crucial technical condition in the market. Lee emphasizes that the move is not immediate but is contingent on a specific indicator.
Lee’s prediction is not unconditional. He focuses intensely on the ETH/BTC trading pair. Currently, this ratio is struggling below key resistance levels. Lee specified that a break above the 0.087 resistance is the necessary trigger. If the pair manages to surpass this mark convincingly, it would signal a significant shift in market dominance. This would open the door to the $5,000 per ETH target, representing a considerable increase from current levels.
Ethereum has underperformed Bitcoin for much of the recent cycle. Many investors have been waiting for a capital “rotation” from BTC to ETH. Lee’s analysis suggests this move is imminent if his condition is met. The ETH/BTC pair is closely watched by analysts. It is considered a barometer of risk appetite within the crypto market. A confirmed breakout would affirm that Ethereum is ready to lead the next bullish phase of the cycle.
Is Ethereum Undervalued Against the Giant Bitcoin?
Lee argues that Ethereum is positioned for a “catch-up trade”. Fundamental factors, such as the recent approval of spot ETH ETFs in the U.S., support this bullish view. Although the funds have not yet started trading, anticipation builds optimism. Regulatory approval removes a significant barrier. This situation sets the stage for a greater inflow of institutional capital into Ethereum’s economy.
Investors are now closely watching the 0.087 level on the ETH/BTC chart. Although Tom Lee’s Ethereum price prediction is optimistic, it requires technical confirmation. If the resistance breaks, the bullish momentum could be swift and significant. If the pair fails to overcome this level, Ethereum might continue to consolidate or lose ground against Bitcoin. The market awaits confirmation of this thesis in the coming weeks.
