Tom Lee: Ethereum could hit $20K as tokenization booms

Source: CryptoNewsNet Original Title: Tom Lee: Ethereum could hit $20K as tokenization booms Original Link:

Overview

• Tom Lee says Bitcoin’s classic four-year cycle is dead and expects new BTC highs in early 2026 after tracking the S&P 500 in 2025.
• He argues Ethereum is undervalued, could reach $20K, and will anchor future tokenized securities and payment infrastructure.
• ETH has broken a five-year range, with technicals showing a W-pattern and RSI behavior pointing to further upside despite near-term resistance.

Tom Lee’s Ethereum Projection

Fundstrat Global Advisors co-founder Tom Lee projected Ethereum could reach $20,000 based on anticipated growth in asset tokenization, according to remarks delivered at a major blockchain conference this week.

Lee stated that Bitcoin’s traditional four-year cycle has ended and predicted the cryptocurrency would establish new price highs in early 2026. He forecast Bitcoin would track the performance of the S&P 500 stock index in the coming year before reaching a significant price peak.

Ethereum and Asset Tokenization

The analyst suggested Ethereum would benefit substantially from this market environment, citing Wall Street’s increasing adoption of securities tokenization. According to data from RWA.xyz, Ethereum networks currently hold more than 70% market share of real-world asset tokenization value when layer-2 solutions and EVM-compatible platforms are included.

Lee noted Ethereum’s (ETH) price has remained range-bound for five years but has recently begun to break out of this pattern. He cited this extended consolidation period as a potential indicator of a significant price movement, explaining his decision to convert BitMine into an Ethereum treasury company.

The executive characterized Ethereum as undervalued at current price levels, projecting the network would become central to future financial infrastructure and payment systems.

Technical Analysis and Recent Developments

BitMine has executed multiple Ethereum purchases this week, according to blockchain analytics platform Lookonchain, though the company has not officially confirmed the transactions. The exact amount of the purchases was not disclosed.

Market analysts provided technical analysis suggesting Ethereum could experience upward price movement. Analysis noted that over the past five years, Ethereum has rebounded significantly when the one-day Relative Strength Index moved from overbought to oversold conditions before breaking trend lines.

Ethereum traded lower during Asian trading hours after failing to break through resistance levels. The cryptocurrency has gained in recent weeks, recovering from a double-bottom formation and appearing to form a W-shaped pattern on price charts.