Tom Lee, the co-founder and CIO of FundStrat, has a bullish price outlook for Ethereum, predicting a five-digit price target this year.
Lee told CoinDesk in a recent interview that Ethereum, the second-largest cryptocurrency by market cap, has massive upside potential before the end of 2025. He predicted a surge to $4,000 by the end of July and a staggering $15,000 price target by the year’s end.
His prediction follows an Ethereum rebirth, evident in its bullish price action. Ether has rallied 25% in the past seven days and over 50% since the start of July, recouping lost ground from earlier downtrends this year.
Why Ethereum Is Going Higher
Notably, fueling Lee’s price outlook is what he calls the “ChatGPT moment for crypto,” with Ethereum in view. He emphasized that institutional investors are taking a second look at Ethereum on the back of its emerging stablecoin use case.
For context, Circle’s stellar public offering and the US adoption of stablecoins through the passage of the GENIUS Act have drawn Wall Street’s attention to dollar-pegged stablecoins. Lee highlighted a convergence of institutional players on Ethereum due to its proficiency in stablecoins.
Notably, top industry leaders have projected an explosion in the dollar-pegged stablecoin sector, specifically targeting $2 trillion from its over $250 billion market cap in a few years. Lee noted that Ethereum will ride on this momentum, considering its American nativity, enormous network functionality, and real-world asset utility.
For his price target, he noted that Ethereum will reach $4,000 by the end of July, citing analysis from Fundstrat’s research team. Meanwhile, he predicted that Ether would rally to $10,000 to $15,000 by the end of the year.
Based on the current market price of $3,790, this represents a 160% and 295% increase, respectively. However, Lee mentioned that the $5,000 price mark, just slightly above its current all-time high, is a key level to watch.
Remarkably, Lee’s prediction adds to the bullish price forecasts for Ethereum amid current momentum. Top pundit Altcoin Daily had stated earlier that ETH would easily reach $5,000 or more this year, while Captain Toblerone projected a staggering $30,000 price per coin by 2026 if the global market cap reaches $35 trillion.
Lee Still Bullish on Bitcoin
Meanwhile, despite his newfound support for Ethereum after assuming the office of chairman at Bitmine Immersion Technology, Lee remains a long-standing advocate of Bitcoin. He shared that he is still an adamant Bitcoin fan and believes the cryptocurrency is undervalued at its current price.
Moreover, Lee asserted that Bitcoin will soon trade at $1 million per coin, calling it the “ultimate form of trust” and digital gold. The FundStrat CIO claimed that its reputation as a store of value, similar to gold, will ensure it captures a considerable portion of the precious metal’s market capitalization.
If Bitcoin matches gold’s current $22 trillion market cap, Lee noted it would culminate in a price value above $1 million. This bullish trajectory makes BTC’s current price of $119,190 a bargain.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
