Industry leader Tom Lee shared how to do just that Ethereum price it could reach $12,000 in the next few months. He based his prediction on Bitcoin’s price action and how ETH could match the flagship crypto on potential growth.
Tom Lee explains how Ethereum’s price could rise to $12,000
Talking at Binance Blockchain WeekTom Lee predicted that Ethereum’s price could reach $12,000 as Bitcoin rises to $250,000 in the next few months. He explained that ETH could reach the $12,000 target if the ETH/BTC ratio returns to its eight-year average of 0.0479. Lee described this potential boost to $12,000 as a “huge move.”
Tom Lee further predicted that Ethereum price could reach $22,000 if the ETH/BTC ratio reaches a 2021 high of 0.0873. He added that he believes that Ethereum will become the future of finance and payment systems. Therefore, Lee predicted that the ETH/BTC ratio could reach 0.2500, causing anemia Ethereum Rally up to $62,500. Accordingly, the expert concluded that ETH of $3,000 is “grossly undervalued.”
Tom Lee also noted that the larger the base, the greater the rise in Ethereum’s price. He noted that ETH spent years building a base similar to its current price action before moving from $90 to the previous level highest level ever (ATH) amounting to $4,866. The expert added that if the pattern repeats, the next phase could be bigger than people expect.
It is worth adding that Tom Lee is the president of BitMine, the largest Ethereum treasury company. According to Strategic data on ETH reservesthe company currently holds 3.73 million ETH, which is just over 3% of the altcoin’s total supply. Lee remains bullish on Ethereum’s price even though his company suffered a $3.3 billion unrealized loss on its ETH investment.
Augment to $62,000 is ‘ambitious’
Market commentator The Milky Way described Tom Lee’s prediction of an Ethereum price of $62,000 in a few months is ambitious. The platform stated that ETH/BTC ratio 0.25 never happened. The highest ever rate was 0.15 and this occurred during the 2017 supercycle, making it less likely now given the change in market conditions.
Tom Lee based his predictions on Ethereum Bitcoin reaches $250,000which Milk Road also identified as a problem. The market commentator noted that BTC would need to boost 177% from current prices to achieve this goal. The last time this happened was in 2020, when the price rose from $7,000 to $19,000 during the “peak mania.” It is worth noting that BTC did not see a 100% boost even after the launch of Bitcoin ETFs last year.
At the time of writing, Ethereum is trading around $3,000, down more than 4% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Freepik, chart from Tradingview.com
