Tom Lee Says Ethereum Is ‘Vastly Undervalued,’ Could Hit $6,000 if Bitcoin Reaches $150,000

Ethereum is still "vastly undervalued" despite last week’s sharp rally, according to Fundstrat’s Tom Lee, who says tokenization, AI agents and institutional adoption could drive the next major leg higher.Speaking on the Milk Road Show, the co-founder and head of research at Fundstrat Global Advisors said Ethereum’s move from roughly $1,900 to $2,500 was not just a short squeeze — it was a "course correction."Lee sees improving crypto fundamentals while prices were still acting like the market was stuck in a deep crypto winter.Compared to prior bear markets, which were marked by failed companies, shrinking capital and fewer use cases, the opposite is happening, Lee pointed out.Major financial institutions are building tokenized products and stablecoins are expanding. AI agents are creating a new use case for crypto rails.The short liquidation event showed how offsides traders were, but it can turn into something much larger, according to Lee.Lee’s Big Ethereum Bull CaseLee said Ethereum is positioned to capture the future growth of the financial system as assets move on-chain.His thesis has two main drivers:Tokenization of real-world assetsAI agents using crypto rails for payments and settlementTraditional financial rails were built for humans, not software agents making instant micro transactions. If AI agents become economic actors, they will need fast, programmable, low-cost systems for moving value.Crypto, Lee noted, is the obvious candidate — and Ethereum the leading public blockchain for that role.Lee described the rise of AI-controlled money as the "uncanny valley of wealth."The risk is that AI agents could one day manage financial activity on behalf of humans or even act outside human intent.That makes smart contracts, instant settlement and transaction finality more important.A Tokenization SupercycleLee also backed Robinhood Markets Inc. ) CEO Vlad Tenev’s call for a "tokenization supercycle."In Lee’s view, financial markets are overdue for a major infrastructure upgrade by means of tokenized assets, which could make markets faster, cheaper and more programmable.Once more assets become programmable, the addressable market could expand toward $500 trillion, including intellectual property, loyalty points, licensing rights, reputation, contracts and other assets that are not currently treated as money.Why the ETH/BTC Ratio Could Keep RisingLee said Ethereum’s ratio against Bitcoin could climb back to at least 0.08, the level seen near the 2021 cycle highs.If Bitcoin reaches $150,000 and ETH/BTC climbs to 0.04, Ethereum would trade near $6,000, which Lee sees as a conservative target.BitMine Immersion Technologies Inc ) has accumulated more than $14 billion worth of ETH and is targeting 5% of Ethereum’s total supply.It has also authorized up to $4 billion in stock buybacks and recently bought back nearly 20 million shares when the stock traded below $15.For investors, the key question is whether Wall Street keeps building on Ethereum.If it does, Lee says ETH’s current valuation may still be far too low, even after last week’s rally.Image: ShutterstockRead Also: EXCLUSIVE: Claude Revenue Surges 1,000% as Anthropic Gains on ChatGPT