Fundstrat Chief Investment Officer Tom Lee predicts that Ethereum will rise to $5,500 in the short term and break through $12,000 by the end of the year.
$ETH This year's market is very strong, prompting Wall Street to gradually switch its bets on Bitcoin to the Ethereum track.
Fundstrat Chief Investment Officer Tom Lee also boldly raised the target price for Ethereum in his latest prediction, believing that the token will rise to $5,500 in the short term and break through $12,000 by the end of the year.
Lee emphasized that Ethereum is the foundational blockchain infrastructure of traditional finance, currently supporting over $145 billion in stablecoin supply. This huge market dominance makes Ethereum one of the biggest macro investment opportunities in the next decade.
This has also prompted fund managers and retail investors to systematically reallocate funds from Bitcoin to Ethereum, with an average daily rotation of about $900 million.
Standard Chartered analyst Jeff Kendrick also pointed out that compared to Bitcoin peers, the capital flow scale of Ethereum funding companies is increasing. He also noted that from a regulatory arbitrage perspective, these funding companies that reserve Ethereum have greater expansion potential compared to those that reserve Bitcoin.
The latecomers surpass the early ones
Lee sets the final price of Ethereum between $12,000 and $16,000 and claims that Ethereum is experiencing Bitcoin's moment from 2017.
In 2017, the price of Bitcoin rose 13 times. Lee set the target price for Bitcoin at $55,000 that year, while the trading price of Bitcoin was only $2,000, which later drew attention to Lee.
Bankless cryptocurrency analyst Ryan Adams believes that Lee's current predictions for Ethereum are unusual.
Previously, Lee provided investment analysis for Ethereum to BitMine and assisted in acquiring $21.28 million worth of Ethereum, increasing its total holdings to 1.72 million Ethereum, valued at $7.65 billion.
Adams believes that if the price of Ethereum reaches $12,000, then BitMine will surpass the Ethereum reserve strategy to become the world's largest publicly listed digital asset financial company.
Kendrick from Standard Chartered added that since June, Ethereum and Ethereum ETFs have absorbed nearly 5% of funds, representing the fastest inflow rate in cryptocurrency history, surpassing Bitcoin's accumulation rate by the end of 2024.
He stated that the recent surge in holdings signifies the early stages of a broader accumulation cycle, and fund management companies could ultimately control 10% of all circulating Ethereum. Given that companies like BitMine have announced a target of 5% of circulating supply, there is still room for accumulation, which will provide strong support for the price of Ethereum.
