Tom Lee Predicts Ethereum Surge to $7,000–$9,000 by Early 2026 – Then $20,000 Long-Term

Fundstrat Global Advisors co-founder Tom Lee delivered a bold forecast for Ethereum (ETH) on December 24, 2025, predicting the second-largest cryptocurrency could rally to $7,000–$9,000 as early as the first half of 2026, with a long-term target of $20,000.

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Lee attributed this potential surge to the accelerating adoption of real-world asset (RWA) tokenization and Ethereum’s growing role as a competitive alternative to traditional payment rails.

Lee’s Vision: Tokenization as the Key Catalyst

During a CNBC appearance, Lee emphasized that Wall Street institutions are increasingly turning to Ethereum for tokenized finance, which he believes will drive massive new demand. “Tokenization is the next big wave,” Lee said. “Institutions are looking for efficiency, transparency, and programmability—Ethereum is the clear leader in that space.”

He argued that Ethereum’s layered architecture (L1 + L2s) gives it a structural advantage over competitors, enabling scalable, low-cost applications for tokenized bonds, real estate, equities, and more.

Lee also reiterated his long-standing bullish stance, noting that ETH’s current price action reflects short-term macro pressures rather than fundamental weakness.

Current Price Action and Technical Context

At the time of his comments, ETH traded around $2,927—down roughly 1% in the past 24 hours and 2% over the week.

The token has struggled to reclaim the $3,000–$3,300 range after hitting an all-time high near $4,950 in August 2025, reflecting broader market consolidation.

Lee’s prediction implies a potential 140–200% gain from current levels by early 2026, and up to 580% to reach $20,000 long-term.

BitMine’s Aggressive ETH Accumulation Backs the Thesis

Lee’s optimism is mirrored by BitMine Immersion Technologies, where he serves as chairman. The firm added nearly $1 billion worth of ETH in December alone, pursuing a strategy to hold 5% of Ethereum’s total supply.

Despite unrealized losses in the short term, BitMine continues staking and accumulating, signaling strong conviction in ETH’s future.

Contrasting Views and Risks

While Lee remains firmly bullish, some analysts caution that the path to $7,000+ could face headwinds.

Fundstrat’s internal reports have modeled scenarios with ETH dipping below $2,000 (potentially to $1,800) in early 2026 before any major rally, highlighting the possibility of further correction.

Critics have also pointed to the contrast between Lee’s public forecasts and the firm’s own conservative models, with some joking that his targets serve to justify ongoing ETH holdings.

Looking Ahead: 2026 Outlook for Ethereum

Lee’s prediction aligns with broader institutional trends: rising ETF inflows, RWA tokenization growth, and improving regulatory clarity. If the Federal Reserve continues easing and risk appetite returns, Ethereum could indeed see significant upside as the preferred blockchain for tokenized finance.

However, macroeconomic uncertainty, competition from layer-1 alternatives, and potential short-term volatility remain key risks. For now, Lee’s call stands as one of the most aggressive bullish targets for ETH in 2026—positioning the asset as a potential leader in the next leg of the crypto bull cycle.