Tom Lee from Fundstrat thinks Ethereum (ETH) is getting a raw deal. Speaking at Binance Blockchain Week on Thursday, he argued that the second-largest cryptocurrency is "grossly undervalued" compared to Bitcoin (BTC), and that current prices ignore what Ethereum could become as digital finance evolves.
His argument isn't just vibes. It's built on ratios, historical patterns, and some pretty specific math.
The $12,000 to $62,000 Valuation Framework
Lee laid out three scenarios, each with its own price target depending on how the market decides to value Ethereum relative to Bitcoin.
First, the conservative case: Lee said Bitcoin could hit $250,000 within a few months. If Ethereum's ETH/BTC ratio simply returned to its long-term average of 0.0479, that would put ETH at around $12,000. Lee called this a "huge move" and noted the ratio has held over extended periods before, making it a reasonable baseline.
Next, the cycle comparison: If Bitcoin reaches $250,000 and Ethereum matches its 2021 cycle high ratio of 0.0873, you'd be looking at an ETH price of $22,000. This scenario assumes the market prices Ethereum similarly to how it did during the last major bull run.
Then there's the ambitious vision. Lee described Ethereum as potentially becoming the "future of finance" and the "payment rails of the future." Under that scenario, he expects an ETH/BTC ratio of 0.25. At Bitcoin $250,000, that would imply an Ethereum price of $62,000, representing what he sees as a significant structural re-rating of how the asset is valued.
The Chart Tells a Different Story
Lee's macro view might be optimistic, but the technical picture is still pretty defensive. Ethereum failed to extend its recent bounce and remains trapped beneath a cluster of resistance levels that keep rejecting any upside momentum.
Price is stuck below the 0.5 Fibonacci retracement at $3,123 and the 0.618 level at $3,242. Both have repeatedly turned back attempts to push higher. The chart looks weak because Ethereum is still trading below its major moving averages: the 20-day sits around $3,078, the 50-day is at $3,349, and the 100-day is near $3,550. These levels are acting like ceilings, blocking the price from moving higher.
The $3,242 to $3,400 region has become the central rejection zone, with sellers defending each attempt to break above it. There is one small positive sign: the Parabolic SAR flipped bullish, which shows early strength after a long period of downward pressure. It's not a full trend reversal, just a hint that selling momentum might be slowing down.
Meanwhile, Coinglass data shows persistent outflows, with $42 million leaving spot markets on December 5 as investors continued to scale back exposure.
Levels That Matter
If Ethereum loses support at $2,856, it exposes $2,747 and the lower range at $2,618. Those levels would unwind recent gains and likely pressure sentiment further.
On the upside, ETH needs to break $3,242 and reclaim $3,400 to shift the chart from defensive to constructive. A sustained move toward $3,550 and above the 100-day EMA would mark a real trend change, though current signals don't point to that outcome without some kind of catalyst.
So you've got this interesting tension: Ethereum at $3,000 looks cheap in Lee's macro valuation model, but the chart remains controlled by sellers. Flows, moving averages, and technical indicators are all flashing caution. The fundamental case might be compelling, but the market isn't buying it yet.