Tom Lee: Ethereum Could Reach $62,000 If It Hits This ETH/BTC Ratio

Tom Lee, Chief Investment Officer at Fundstrat Capital and Chairman of Bitmine BMNR on Wednesday outlined how Ethereum ETH/USD could eventually be valued at $62,000 per token.

What Happened: Speaking in a presentation, Lee broke down the case using historical price bases, the Ethereum-to-Bitcoin ratio, and the potential of Ethereum as financial infrastructure.

Lee began by pointing to Wyckoff's methodology of "bases," noting Ethereum's long consolidations since 2018.

"They say the bigger the base, the bigger the breakout," he explained, referencing Ethereum's surge from $90 to $4,866 between 2020 and 2021 after breaking out of its earlier base.

He then compared Ethereum's value to Bitcoin BTC/USD through their historical ratio.

The eight-year average ratio stands at 0.0479, while the current ratio is below that at 0.0403.

The all-time high ratio reached 0.0807 in 2021.

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"We think that not only should Ethereum recover to the long-term average, it should probably get to the all-time high ratio and arguably exceed it," Lee said.

Using Fundstrat's year-end Bitcoin target of $250,000, Lee calculated that Ethereum could be priced between $12,000 and $22,000 if the ratio recovers.

But he added that this is only part of the story.

When factoring in Ethereum's potential role in replacing payment rails and banking infrastructure, he sees an implied valuation of $60,000 per token.

"That puts the ratio at roughly 0.25 Ethereum to Bitcoin… and as you can see, that's how you get to $62,000 per Ethereum token," Lee said.

What’s Next: Fundstrat's Mark Newton, offering a technical view, projected Ethereum could reach $9,000 by early January, with possible near-term moves to $5,500 in September.

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