Industry Leader Shares Why Ethereum Price Will Reach $12,000

Industry chief Tom Lee has shared how the Ethereum price may attain $12,000 throughout the subsequent few months. He based mostly his prediction on the Bitcoin value 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 value 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 “big transfer.”

Tom Lee additional predicted that the Ethereum value may attain $22,000 if the ETH/BTC ratio will get to its 2021 high of 0.0873. He added that he believes Ethereum will grow to be 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 high as $62,500. In line with this, the skilled 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 value. He famous that ETH spent years constructing the same base to its present value motion earlier than the transfer from $90 to its earlier all-time high (ATH) of $4,866. The skilled added that if the sample performs out once more, the subsequent leg could possibly be bigger than what individuals anticipate. 

It is price 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 value, 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 value prediction of $62,000 in a number of months as being bold. The platform said 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 through the 2017 supercycle, which makes it much less possible now, provided that market circumstances have modified. 

Tom Lee had based mostly his Ethereum prediction on Bitcoin hitting $250,000, which Milk Road additionally described as a difficulty. The market commentator famous that BTC would want to surge 177% from present costs to achieve this goal. The final time this occurred was in 2020 when it surged from $7,000 to $19,000 through the “peak mania.” Notably, BTC didn’t file a 100% acquire even when the Bitcoin ETFs launched final 12 months. 

At the time of writing, the Ethereum value is buying and selling at round $3,000, down over 4% within the final 24 hours, in keeping with data from CoinMarketCap.