Ethereum (ETH 0.01%) may be down 40% from its all-time high of $4,954 from earlier this year, but that’s not stopping investors and Wall Street analysts from ratcheting up their price forecasts heading into 2026.

Case in point: Wall Street strategist Tom Lee of Fundstrat says Ethereum could hit a price of $62,000 by mid-2026. Obviously, a lot needs to go right between now and then. After all, at a current price of about $3,000, that implies a gain of more than 1,900% for Ethereum within an incredibly short period of time.

The path to $62,000 for Ethereum

The narrative around Ethereum right now is that it is the preferred blockchain of Wall Street. After all, Ethereum has been the clear leader in decentralized finance (DeFi) ever since it launched more than a decade ago. It has also been at the forefront of pioneering every single finance-related innovation in the DeFi sector, from smart contracts to stablecoins.

So a lofty price target of $62,000 is based on the idea that Ethereum will continue to be a DeFi powerhouse for years to come. Moreover, it assumes that Ethereum will continue to be the market leader when it comes to emerging trends in the DeFi sector.

Image source: Getty Images.

The one trend that has Lee’s attention right now is called real-world asset (RWA) tokenization. That’s a mouthful, but it just refers to the transformation of traditional financial assets (such as stocks and bonds) into digital assets that can be stored, managed, and traded on the blockchain.

According to Lee, the financial world is now facing a “1971 moment.” In other words, the shift from traditional assets to digital assets could be as big as taking the world off the gold standard.

It’s up to you to decide whether this is true, of course. Asset tokenization is still in its infancy, and market predictions have a way of getting out of control fast. Just a few years ago, asset tokenization was supposed to be a nearly $20 trillion market opportunity. But last year, McKinsey & Co. scaled back that figure to $2 trillion.

But only if Bitcoin hits $250,000?

Moreover, there’s another little wrinkle to the $62,000 price forecast. It also assumes that Bitcoin (BTC +0.34%) will skyrocket to a value of $250,000 by early next year. Considering that Bitcoin is trading for about $85,000, that’s a lot to expect. Bitcoin will need to almost triple in the span of mere months.

According to Lee, Ethereum should trade at a 0.25 multiple to Bitcoin. Thus, just take the price of Bitcoin, divide by four, and that’s where Ethereum should be trading.

Ethereum

Today’s Change

(-0.01%) $-0.26

Current Price

$2925.95

As a quick back-of-the-envelope calculation, that implies Ethereum should be trading around the $21,250 price point right now, given that Bitcoin is currently trading at roughly $85,000. That’s why Lee thinks Ethereum is wildly undervalued right now. From his perspective, investors simply have not grasped how important Ethereum is to the future of the modern financial world.

While a price of $21,250 might sound mildly outrageous, it does line up with where Standard Chartered thinks Ethereum will be in a few years. Earlier this year, Standard Chartered predicted that Ethereum would hit a price of $25,000 by the end of 2028.

What do Ethereum treasury companies think?

Just keep in mind: Lee is also the chairman of Bitmine Immersion Technologies (BMNR 1.78%), one of the world’s top Ethereum treasury companies. The goal of Bitmine is simple: Buy and hold as much Ethereum as possible, and wait for the price to go up.

Bitmine Immersion Technologies

Today’s Change

(-1.78%) $-0.56

Current Price

$30.83

If the price of Ethereum doesn’t go up, the price of Bitmine is not going to go up either. You can see for yourself. The price of Ethereum has been on the decline since August, and so has the price of Bitmine.

That’s why I’m skeptical about sky-high price targets for any cryptocurrency, especially those that are well beyond any previous highs. These price targets often include hidden biases and assumptions. A forecast price of $62,000 is 12 times higher than any price that Ethereum has ever hit in the past.

Although Ethereum’s price has historically been very highly correlated with the price of Bitcoin, there’s no guarantee that Bitcoin is headed higher in 2026, or that Ethereum will follow along for the ride. For now, I’ll be grateful if Ethereum can claw its way back to the $5,000 level by year-end.