Tom Lee Predicts $5,000 ETH If ETH/BTC Pair Breaks 0.087 Resistance

Core Viewpoint - Fundstrat Capital's CIO Tom Lee predicts Ethereum could reach $5,000 if the ETH/BTC pair breaks above the 0.087 resistance level, indicating a significant structural shift for Ethereum [1][4]. Group 1: Ethereum's Market Position - Bitmine Immersion Technologies holds 3.24 million ETH, approximately 2.7% of the total supply, with a long-term goal of 5% ownership, referred to as the "alchemy of 5%" by Lee [2]. - Lee argues that Ethereum is becoming the financial infrastructure for Wall Street's transition to on-chain operations, similar to the historical shift from the gold standard [2][3]. Group 2: Financial Activity and Market Dynamics - Lee suggests that if half of the world's financial activity transitions on-chain, Ethereum will surpass any bank or exchange in size, establishing itself as a dominant settlement chain [3]. - Despite recent market volatility, Lee maintains a bullish outlook, viewing the current price dislocation as an attractive accumulation zone for institutional investors [4]. Group 3: Valuation Insights - Lee's valuation model indicates Ethereum's fair-value corridor is between $12,000 and $22,000, depending on Bitcoin's price, suggesting significant upside potential for Ethereum [5]. - At a Bitcoin price of $250,000, Ethereum's implied value could range from $11,965 to $21,818, while at $150,000, it could trade between $7,179 and $13,091 [5]. Group 4: Technical Analysis - Analyst John Bollinger notes that the ETHUSD chart is forming a "W" double-bottom pattern, which could lead to a rally towards $5,000 within the week [6].