Ethereum News Today: "Wall Street's New Faith: Ethereum as the Digital Foundation of Finance"

Fundstrat's Tom Lee has made a bold prediction for Ethereum, forecasting a significant price surge to $12,000 by year-end, a sharp contrast to the current trading level of just over $4,550 as of early Monday. Lee, who also chairs the ETH treasury firm BitMine, emphasized that Ethereum is the foundational blockchain infrastructure for traditional finance (TradFi), currently supporting over $145 billion in stablecoin supply. This growing institutional adoption is a key factor in his bullish stance, especially following the U.S. Senate’s passage of the GENIUS Stablecoin legislation, which he claims has shifted Wall Street sentiment toward the asset. BitMine has already acquired 1.72 million ETH, valued at $7.65 billion, as part of a strategy to accumulate the asset ahead of anticipated price appreciation [2].

Lee’s forecast is supported by internal analysis and technical evaluations from Fundstrat’s technical strategy lead, Mark Newton. According to Newton, Ethereum is expected to find a price floor within hours and move toward new highs near $5,100 before targeting the $5,500 level. This aligns with Lee’s more immediate-term target of $5,500 and a longer-term vision of $12,000. Lee’s predictions echo his past success in 2017, when he predicted a $55,000 Bitcoin price while the asset was trading at $2,000. In a recent CNBC appearance, Lee likened Ethereum’s current situation to Bitcoin’s 2017 run, suggesting a similar trajectory could unfold [2].

Despite these optimistic forecasts, not all analysts are in agreement. Senior Market Analyst at TradeNation, David Morrison, argued that Ethereum remains technically overbought, citing its daily MACD as a key indicator of potential near-term corrections. He suggested that a pullback could allow for consolidation and the removal of speculative gains, a pattern similar to what has been observed in major U.S. stock indices. Morrison also noted that Bitcoin currently presents a more attractive investment case, as its daily MACD has returned to neutral levels, indicating a lower short-term risk profile [1].

eToro analyst Simon Peters added another layer of caution, citing historical seasonality in the crypto market. September, according to Peters, has traditionally been one of the weaker months for crypto asset performance, particularly after a strong rally. With Ethereum having surged 250% since April and reaching a record high of $4,946, the token may face selling pressure from long-term holders seeking to lock in gains. This could delay or even limit the extent of the expected rally [1].

Amid these divergent views, institutional and retail inflows continue to support Ethereum. The recent $255 billion increase in Ethereum’s market capitalization, largely driven by systematic reallocation from Bitcoin to Ethereum, underscores the growing confidence in the asset. Standard Chartered analyst Jeff Kendrick observed that ETH-focused treasury entities are expanding more aggressively than their Bitcoin counterparts, suggesting a broader shift in capital flows. This trend, combined with regulatory clarity and ongoing network upgrades, is seen by some as a catalyst for further appreciation [2].

As Ethereum’s ecosystem continues to evolve, its role as a cornerstone for decentralized finance and institutional-grade assets is becoming more pronounced. While the path to $12,000 is not without risk—regulatory uncertainty, potential delays in upgrades, and macroeconomic volatility could all impact the trajectory—current momentum and capital flows point to a strong finish to the year. Whether Ethereum follows the higher end of the projected range or consolidates closer to $7,000, its performance will be closely watched by both retail and institutional investors [3].

Source: [1] Fundstrat's Tom Lee Predicts Ethereum Bottom and Rally (https://finance.yahoo.com/news/fundstrats-lee-predicts-ethereum-bottom-195031823.html) [2] Tom Lee Predicts Ethereum Rally to $5,500 Soon, $12,000 by Year-End (https://finance.yahoo.com/news/tom-lee-predicts-ethereum-rally-194509703.html) [3] Ethereum Price Prediction Until the End of 2025 (https://cryptodnes.bg/en/ethereum-price-prediction-until-the-end-of-2025/)