Ethereum price prediction 2026: Crypto investors are showing strong support for Fundstrat co-founder Tom Lee’s bullish view that Ethereum could outperform major rivals, including Bitcoin, as per a report. Lee predicts that Ethereum might dip toward $2,500 in the near term before surging to between $7,000 and $9,000 early next year, as per a CCN report.

Ethereum (ETH) Could Dip to $2,500 Before Surging to $7,000–$9,000

In a recent conversation with Wealthion’s Chris Perkins, Lee highlighted Ethereum’s global developer base and technical resilience as key advantages,” adding, “I think it’s a true robust community with actual known values, and it’s a neutral blockchain with 100% uptime,” as quoted by CCN.

Why Ethereum Could Outperform Other Cryptos in 2026

Another factor Lee highlighted is the potential for institutional tokenization. Even if major banks like JPMorgan or Goldman Sachs don’t directly run tokenized products on Ethereum, third parties could launch them, attracting significant market liquidity.
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Ethereum Price Outlook: Short-Term Dip Before Major Gain

Lee acknowledged a possible near-term pullback, saying, “Yeah, there is a downside, maybe, to $2,500, but that’s minor compared to the upside of trying to discount a super cycle,” but forecasting a rally to $7,000–$9,000 by the end of January, as per the CCN report.s

He explained that Ethereum’s drop from around $4,800 to below $3,000 followed the October 10 crypto market breakdown and described it as part of a “systematic liquidation cycle,” referencing technical strategist Tom DeMark.

Analysts Highlight Growing Institutional Interest in Ethereum

Crypto analyst Christopher Perkins publicly agreed with Lee’s view, pointing to rising on-chain activity and growing institutional interest.

Perkins said, “As institutions consider their crypto infrastructure choices, security and operational risk will be at the forefront of their decision,” adding, “As value comes onchain, every institution will need a settlement layer (aka blockchain),” as quoted by CCN.

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Perkins further noted that stablecoin settlement volumes are booming, with annual transfers surpassing $50 trillion, according to Token Terminal, signaling Ethereum’s importance as a settlement layer.

He also highlighted the booming stablecoin settlement volumes, and cited the Token Terminal’s report showing annual stablecoin transfer volume surpassing $50 trillion for the year and also emphasized Ethereum’s history, noting that regulated institutions often see ten years of operational track record as the “sweet spot,” as reported by CCN.

Perkins said, “10 years of history, neutrality and no downtime will remain a big differentiator for Ethereum in the institutional space,” as quoted in the report.

FAQs

Why is Tom Lee bullish on Ethereum?
He believes Ethereum’s strong developer base, technical resilience, and neutral blockchain make it a leader in crypto.

Could Ethereum drop in the near term?
Yes, Lee predicts a possible dip to around $2,500 before a major rebound.