Tom Lee Says Ethereum Will Lead Altcoin Rally as he Eyes $9K to $12K Surge

Tom Lee projects Ethereum could climb to $9K–$12K, outpacing Bitcoin’s growth potential in the coming months.

Fundstrat’s Mark Newton supports the target, citing expanding tokenization and Ethereum’s smart contract dominance.

Lee notes altcoins follow Ethereum’s lead, as liquidity moves from Bitcoin to ETH before reaching broader markets.

Ethereum could be gearing up for a major rally, according to Fundstrat’s Tom Lee, who believes the world’s second-largest cryptocurrency will play a crucial role in driving the next phase of the crypto market

Lee stated that while Bitcoin remains underowned, institutional capital could still push it between $150,000 and $200,000. However, he emphasized that Ethereum holds the stronger upside potential heading into the coming months.

Bitcoin Still Underowned Despite OG Selling

Lee explained that many early Bitcoin holders have taken profits above $100,000, yet the digital asset remains underrepresented in traditional portfolios. He noted that Bitcoin continues to attract growing institutional interest as fund managers reassess their exposure to digital assets

According to Lee, this institutional rotation could lead another sharp rally toward the $150,000 to $200,000 range if broader participation increases.

However, while Bitcoin’s outlook remains optimistic, Lee pointed out that Ethereum’s growth narrative appears more compelling. He highlighted that key developments around tokenization and smart contract infrastructure are centered on Ethereum, forming the foundation for the next expansion in digital finance.

Ethereum at the Core of Tokenization

Lee emphasized that stablecoins, tokenized gold, and Wall Street’s asset tokenization initiatives rely heavily on Ethereum’s smart contract capabilities. He referenced recent moves by major financial firms exploring blockchain-based assets, noting that Ethereum remains their primary platform.

According to Lee, the expanding use of Ethereum for tokenization has raised investor expectations for its long-term growth. Fundstrat’s technical head, Mark Newton, projects Ethereum could reach between $9,000 and $12,000 by January, more than doubling from its current levels near $3,600.

Lee also cited insights from ARK Invest’s Cathie Wood, who noted that stablecoins and tokenized assets have drawn capital away from Bitcoin but depend on Ethereum’s network to function. This growing dependency reinforces Ethereum’s position as the backbone of the emerging digital asset ecosystem.

Altcoin Market Awaits Ethereum Breakout

Beyond price projections, Lee explained that Ethereum’s momentum often determines the broader market’s direction. He outlined that liquidity in the crypto market typically rotates from Bitcoin to Ethereum, then to major altcoins, and finally smaller projects.

“Altcoins don’t run until ETH leads,” Lee said, emphasizing that a strong Ethereum rally is usually the key catalyst for broader altcoin gains. As institutional participation grows and tokenization efforts expand, the market now looks toward Ethereum to confirm the next major crypto cycle.

The post Tom Lee Says Ethereum Will Lead Altcoin Rally as he Eyes $9K to $12K Surge appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.