Fundstrat’s Tom Lee acknowledges research suggesting Ethereum may reach its record high if it returns to the 2017 price ratio against Bitcoin.
The prediction came during a CNBC interview on Bitmine’s increasing ETH accumulation. Fundstrat’s Tom Lee cited internal research suggesting Ethereum’s value could quadruple and reach $16,000 if it returns to its 2017 price ratio against Bitcoin.
Analyst Ties Ethereum Price to Historic Ratio
Tom Lee referred to a new presentation by Sean Farrell, Fundstrat’s head of digital asset strategy. Farrell’s analysis suggests Ethereum could reach $16,000 if it regains its 2017 ETH/BTC ratio peak of 0.14. While Tom Lee mentioned that this peak was in 2021, it actually occurred in 2017.
Notably, data from TradingView reveals that the ETH/BTC pair peaked at around 0.08 in 2021. Meanwhile, the pair reached 0.14 in June 2017. With Bitcoin trading near $114,569, a return to the 0.14 ratio would represent a sharp increase in Ethereum’s market value to around $16,000.
Lee also noted Ethereum’s investment story is more compelling today than it was five years ago. Just yesterday, he named Ethereum his top bet over Bitcoin for the next decade, citing its 2017-like momentum and growing role in tokenization.
He called it the “biggest macro trade,” highlighting Wall Street’s shift toward stablecoins and BlackRock’s BUIDL launch on Ethereum as signs of rising institutional adoption.
Meanwhile, the $16,000 forecast isn’t the first bold prediction from the BitMine Chairman. He had earlier predicted Ethereum could hit $60,000, citing research comparing ETH’s role in finance to Wall Street’s infrastructure. Ethereum’s dominance in stablecoins, with a market share of over 60%, and its rising use in tokenization reinforce BitMine’s bullish outlook.
Bitmine’s Accumulation Strategy Could Lead to an Ethereum Surge
The CNBC host noted that Strategy influences Bitcoin’s price through aggressive buying. With Bitmine now accumulating Ethereum, she questioned if the same strategy could affect ETH’s price trajectory.
For context, Strategy is the public company with the largest number of Bitcoins in its portfolio. The company holds 628,791 BTC valued at $72 billion. Meanwhile, BitMine holds the largest Ethereum portfolio, currently 833,137 tokens valued at $3 billion.
Will Ethereum Reach $16,000?
Following the forecast, prominent analyst Crypto Patel supported this bullish outlook, showing ETH currently consolidating within a massive ascending triangle that began forming after its peak in 2021.
The chart highlights a breakout structure similar to previous cycles, particularly the 325% rally that followed Ethereum’s last breakout, propelling the price to $4,878 in November 2021. If this pattern repeats, a 323% surge from current levels near $3,666 would propel ETH toward the $16,000 target zone.
This bullish setup gains even more weight when looking at Ethereum price action in 2017. Ethereum skyrocketed from under $7.98 in January 2017 to over $407 in June 2017, marking a life-changing rally of over 5,000% surge. This surge increased till it reached $1,428 in 2018.
Crypto Patel noted that with on-chain activity at all-time highs and optimism growing around Ethereum spot ETFs, Ethereum seems poised for a defining rally that could reshape its role in the crypto market.
Notably, VanEck’s July crypto recap suggests Ethereum could eventually surpass Bitcoin as a store of value. While Bitcoin still leads due to its fixed supply and monetary policy, institutional interest in Ethereum is rising, driven by staking and DeFi opportunities.
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.
