Tom Lee says Ethereum could hit $16K if the ETH/BTC ratio returns to 2021 highs, boosted by rising institutional interest.
Tom Lee, the head of research at Fundstrat, believes that the price of Ethereum (ETH) might hit $16,000.
According to him, Ethereum is now in the same position as Bitcoin when institutions first began experimenting with the cryptocurrency in 2017.
Tom Lee Projects Ethereum Price Target Of $16,000
A Wall Street analyst, Tom Lee, is optimistic about Ethereum despite the slower start to August.
In a recent interview with CNBC, Lee stated that he still believes ETH will reach $16,000.
His goal is predicated on the 2021 BTC/ETH ratio, which indicates that there is still a lot of opportunity for growth if Ethereum takes a similar course.
He says.
“The ratio of Ethereum to Bitcoin could go back to 2021 highs, which is about 0.14. That would value Etherem today at around $16,000.”
Additionally, according to Lee, Ethereum is experiencing its 2017 moment.
Wall Street jumped into the idea that Bitcoin was digital gold throughout this year.
Now that US restrictions are more lenient, Wall Street is using ETH.
This implies that Ethereum may have experienced the same boom that Bitcoin experienced over the past eight years, starting in 2017.
One of the biggest ETH bulls right now is Lee.
Currently serving as its chair, Bitmine is gradually becoming the “MicroStrategy of Ethereum.”
Bitmine is one of the business companies that is growing Ethereum treasuries, according to CoinGape.
ETH Verifies Wedge Breakout Ahead Of 79% Rally
Gert van Lagen, an analyst, concurs with the optimistic view that the price of Ethereum is rising.
At the $4,000 resistance, he spots a falling wedge masquerading as rejection. This wedge suggests that ETH may be about to come back.
There is a 79% drop from the wedge’s highest point to its lowest.
This implies that although the price may replicate the same performance, the 79% will favor bulls this time.
This is a 79% increase from the $4,000 resistance level.
According to this prediction, Ethereum might reach $9,000. According to Lagen, the likelihood that this pattern would unfold this way is 67%.
This implies that reaching $16,000, as Lee predicts, may be possible.
According to these forecasts, the general attitude about ETH is still overwhelmingly positive.
However, the long-term outlook for Ethereum seems more balanced, with both bulls and bears possibly making money.
In conclusion, Ethereum’s price performance in August follows its typical seasonal trend.
The coin has previously shifted sideways at this time of year.
However, Tom Lee may still be able to accomplish his $16,000 goal if institutional players start to join in gradually.
