Tom Lee: "Ethereum Kicks Off Rally to Break $3,000"

▲ Ethereum (ETH)

Tom Lee, known as a strong proponent of Ethereum (ETH), has issued an optimistic forecast that the price of Ethereum will begin a full-fledged rally towards $3,000.

According to Cointelegraph, a virtual asset media outlet, on May 1 (local time), Tom Lee, co-founder of Fundstrat Global Advisors (Fundstrat), diagnosed that Ethereum has secured strong upward momentum after moving past its current undervalued phase. Co-founder Lee analyzed that institutional funds flowing in after the approval of an Ethereum spot ETF and increased network utilization will be key drivers in pushing up the price.

Co-founder Lee noted that Ethereum's price increase has been relatively smaller compared to Bitcoin (BTC). He explained, "Ethereum holds an overwhelming market share in the smart contract market, which inevitably leads to a substantial increase in value." He particularly cited the accelerating adoption of Ethereum by institutional investors for portfolio diversification as a positive sign.

From a technical analysis perspective, the possibility of Ethereum reaching $3,000 is also considered high. This is because buying interest is gradually strengthening while major support levels are stably secured. Co-founder Lee assessed that despite short-term market volatility, Ethereum's fundamental strength is more robust than ever. He added an analysis that a supply shortage, coupled with decreasing supply and increasing staking demand, could support price increases.

The development of the Ethereum ecosystem is also a major basis for price increases. The activation of Layer 2 solutions and improvements in network fees are accelerating user inflows. Co-founder Lee predicted that such ecosystem growth would further highlight Ethereum's scarcity. The prevailing outlook is that Ethereum will be the biggest beneficiary when market liquidity flows back into virtual assets.

Ethereum is currently accumulating energy for a breakthrough to $3,000, and co-founder Lee's remarks are stimulating investor sentiment. While macroeconomic uncertainties remain, the unique value of Ethereum is being highlighted, and market expectations are rising. Co-founder Lee expressed confidence that Ethereum will become a core infrastructure of the global financial system, beyond just a virtual asset.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*