Ethereum on Cusp of Major Breakout, Tom Lee Predicts

Fundstrat's Tom Lee remains bullish on Ethereum (CRYPTO: ETH), predicting a potential cloud breakout. According to the analyst, ETH is trading just 3.5% away from its first bullish trend signal since October 2025.

The daily Ichimoku cloud on ETH shows that the cryptocurrency is trading near $1,906, roughly 3.5% below the upper edge of the cloud at around $1,970. A daily close above this level would be a significant milestone for Ethereum.

Lee believes that Ethereum's price action is closely tied to its relationship with Bitcoin (BTC). He points out that the ETH/BTC ratio has broken above its long-term downtrend for the first time in years, driven by growing adoption of tokenization and agentic AI applications running on Ethereum.