Fundstrat's Tom Lee on Thursday said Ethereum (CRYPTO: ETH) is "grossly undervalued" relative to Bitcoin (CRYPTO: BTC), arguing that current valuations ignore long-term adoption trends and structural tailwinds in digital finance.
Lee Outlines $12,000–$62,000 Ethereum Framework
Speaking at Binance Blockchain Week, Lee said Bitcoin could hit $250,000 within a few months.
He added that if Ethereum's ETH/BTC ratio goes back to its long-term average of 0.0479, ETH would be valued near $12,000.
Lee called this a "huge move," noting that the ratio has held over an extended period.
He added that if Bitcoin reached $250,000 and Ethereum matched its 2021 cycle high ratio of 0.0873, the implied ETH price would be $22,000
This frames it as a reasonable outcome if markets priced Ethereum similarly to its previous peak.
For a longer-term view, Lee said Ethereum could evolve into the "future of finance" and "payment rails of the future."
Under that scenario, he expects an ETH/BTC ratio of 0.25, which implies an Ethereum price of $62,000 at Bitcoin $250,000, indicating a significant structural re-rating.
Technical Setup Remains Defensive Despite Bounce
ETH Price Action (Source: TradingView)
Ethereum failed to extend its recent rebound and remains stuck beneath a heavy cluster of resistance levels.
Price is pinned below the 0.5 Fibonacci retracement at $3,123 and the 0.618 at $3,242, which have repeatedly rejected upside attempts.
The chart looks weak because Ethereum is still trading below its major moving averages.
The 20-day is around $3,078, the 50-day is at $3,349, and the 100-day is near $3,550.
These levels act like "ceilings" that block the price from moving higher.
The $3,242–$3,400 region has become the central rejection zone, with sellers defending each attempt to break above it.
One small positive sign is that the Parabolic SAR flipped bullish, which shows early strength after a long period of downward pressure.
It is not a full trend reversal, just a hint that selling is slowing down.
Coinglass data shows persistent outflows, with $42 million leaving spot markets on December 5 as investors continued to scale back exposure.
Key Levels To Watch
Losing $2,856 exposes $2,747 and the lower range at $2,618, levels that would unwind recent gains and pressure sentiment.
On the upside, ETH must 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 trend change, though current signals do not point to that outcome without a catalyst.
Ethereum at $3,000 looks cheap in Lee's macro valuation model, but the chart remains controlled by sellers, with flows, moving averages, and SAR signaling caution.
Read Next:
Image: Shutterstock
