Ethereum Breaks Seven-Month High as Tom Lee Sees Stocks Surging to 8,000
Ethereum (ETH) has reached a seven-month high, closing above $2,750 for the first time since January 29. According to Fundstrat's Tom Lee, this rally is consistent with a pattern where crypto moves typically lead the S&P 500 by about a month.
Lee believes that the August crypto rally helped set the stage for September stock gains. He pointed out that while last week was 'maximum pain, maximum pressure' for markets, the pressure has now eased. Lee expects the S&P 500 to surge above 8,000 by the end of the month, citing AI stocks still trading below their June highs as evidence of the ground left to make up.
Lee's call is linked to Bitcoin's move last month, where crypto rallies in August tend to predict stock moves about a month later. He noted that investors remain underexposed after recent de-risking and are offside due to concerns over rising Fed rates.