Tom Lee Predicts Ethereum Surge to $20,000 in 2026, But With Red Flag

Bold predictions from Tom Lee, co-founder and managing partner of the analytical firm Fundstrat Global Advisors, are making waves again. In a recent appearance on CNBC on December 24, 2025, Lee stated that the price of Ethereum (ETH) could reach $7,000-$9,000 as early as the beginning of 2026, and with the spread of tokenization, it could even soar to $20,000. He emphasized that institutional investors from Wall Street are actively interested in tokenization, which will bring new applications and efficiency to Ethereum, making it a key player in the future of finance.

This optimistic view from Lee is not new: throughout 2025, he has repeatedly highlighted ETH's potential, citing institutional interest and technological innovations. For example, in one interview, he noted that the crypto market is poised for its "best years" ahead, despite possible corrections in the stock market at the start of 2026. Moreover, Lee positively reacted to an anonymous forecast from 4chan predicting ETH at $20,000 by 2026, calling it "output data, not opinions." Some analysts even interpret his vision as potential growth for ETH to $62,000 by mid-2026, based on a 1900% increase from current levels, thanks to tokenized finance and institutional inflows.

However, not everything is so rosy. Fundstrat itself, where Lee holds the position of chief investment officer, allows for more pessimistic scenarios in its internal reports. According to recent publications, the firm warns of a possible drop in ETH below $2,000 - even to $1,800, in the first half of 2026, which contrasts with Lee's public statements. This inconsistency has sparked discussions in the community: critics joke that Lee is "willing to say anything to justify unrealized losses" from ETH investments. While exact data on Fundstrat's losses is not disclosed, similar metrics for other holders, such as Bitmine, show significant unrealized losses in the billions due to market volatility. In particular, analysis of large players' holdings shows MVRV (market value to realized value) ratios at levels indicating potential risks.

Despite these contradictions, Lee's forecast is supported by broader trends. In 2025, Ethereum continued to strengthen thanks to network upgrades, DeFi growth, and real-world asset (RWA) tokenization. Analysts note that if regulatory barriers in the US ease, as expected in 2026, ETH could indeed realize its potential. Nevertheless, investors should remember the risks: Fundstrat also predicts a Bitcoin correction to $60,000, which could drag the entire market down.

In the end, Tom Lee's words are a mix of enthusiasm and strategy, but the cryptocurrency market remains unpredictable. Investors are advised to diversify their portfolios and monitor macroeconomic indicators, such as Fed policy and global events.