Wall Street Strategist Tom Lee Sees Ethereum Surging 177% by 2026 as Crypto Adoption Accelerates
Wall Street research firm Fundstrat’s co-founder Tom Lee is doubling down on his bullish view of digital assets, projecting that the popular cryptocurrency Ethereum could climb as much as 177% by early 2026, potentially reaching around $9,000 per coin. The forecast underscores growing optimism among some strategists that blockchain platforms powering decentralized finance and digital applications will remain central to the next phase of financial innovation.[1][2][5]
Ethereum in the Spotlight
Lee, a widely followed market strategist and head of research at Fundstrat Global Advisors, has highlighted Ethereum (ticker: ETH) as a prime beneficiary of rising demand for decentralized applications, smart contracts, and tokenized assets.[1][2][5] In recent commentary, Lee suggested that Ethereum, trading around the $3,000 level at the time of his remarks, could “easily” rise to the $7,000–$9,000 range in early 2026, implying a gain of roughly 177% at the high end of his estimate.[1][2]
Ethereum is the second-largest cryptocurrency by market value and the dominant platform for building decentralized software, from DeFi (decentralized finance) protocols to blockchain-based games and non-fungible tokens (NFTs).[1] The network’s native token, Ether, reached an all-time high near $4,946 in 2025 before pulling back by year-end, reflecting both its volatility and its expanding use cases across finance and entertainment.[1]
Rationale Behind the 177% Upside Call
Lee’s bullish thesis rests on a combination of growing real-world usage, improving blockchain efficiency, and broader institutional acceptance of digital assets.[1][2][5]
First, Ethereum’s role as the leading platform for decentralized applications positions it at the center of several long-term trends, including tokenized assets, Web3 infrastructure, and on-chain gaming and media.[1] According to Lee, as Ethereum’s technology and applications continue to mature, the network could become increasingly competitive with traditional payment rails, potentially supporting even higher valuations over time.[2]
Second, Lee and other strategists point to sustained growth in crypto adoption. Fundstrat has emphasized that global cryptocurrency usage remains relatively low compared with traditional financial services, leaving what Lee has called an “exponential growth opportunity” as more consumers, developers, and institutions enter the ecosystem.[3] Increased adoption can drive higher demand for Ethereum block space and the Ether token, which is used to pay transaction fees and secure the network.
Third, Ethereum’s prior performance provides some context for the magnitude of the forecast. Despite sharp drawdowns in past cycles, Ether has historically delivered large percentage gains during bull markets, supported by network upgrades and a growing developer base.[1] Lee’s 177% upside projection effectively assumes that Ethereum can build on that pattern as new use cases emerge and macro conditions stabilize.
Fundstrat’s Crypto Lens and Institutional Exposure
Lee’s views carry added weight in part because of Fundstrat’s long-standing focus on digital assets and his role atop a firm that has been actively analyzing crypto market structure and adoption trends for years.[2][3][5] Public commentary has also noted that he chairs a company with more than $13 billion worth of cryptocurrency holdings, a detail that underscores institutional-scale exposure to the asset class even as it remains volatile and speculative.[5]
Fundstrat’s broader framework has paired bullish views on Ethereum with similarly optimistic long-term price targets for Bitcoin. In separate television appearances, Lee has argued that Bitcoin could reach the $200,000 to $250,000 range in 2026, which in his view would break the traditional four-year cycle that has often characterized prior crypto bull markets.[3] Those projections, while distinct from his Ethereum call, reflect a common thesis: that digital assets could benefit from rising adoption, constrained supply in some cases, and increasing integration into mainstream financial systems.[2][3]
Ethereum’s Role in the Evolving Crypto Economy
Ethereum’s technology underpins a large share of the crypto economy, from lending protocols and decentralized exchanges to stablecoins and tokenized real-world assets.[1] This breadth of use supports Lee’s argument that Ether is more than a speculative instrument; it is also a utility token needed to operate and secure a sprawling software ecosystem.
Developers have continued to build on Ethereum even through periods of price weakness, attracted by its mature tooling, large user base, and established security record.[1] Protocol upgrades in recent years have aimed to improve scalability, reduce transaction costs, and shift the network to a more energy-efficient consensus mechanism, a transition that has been closely watched by institutional investors evaluating the environmental footprint of their portfolios.
Lee has emphasized that as Ethereum becomes more efficient and user-friendly, it could challenge or complement traditional financial infrastructure in areas such as payments, settlements, and capital markets.[2] That competitive potential is a key factor behind his expectation that the token’s value could rise substantially by 2026.
Risks and Market Volatility Remain
Despite the upbeat forecast, Lee and other analysts acknowledge that crypto markets remain highly volatile and sensitive to regulatory, macroeconomic, and technological developments.[1][3][5] The same leverage and speculative flows that can amplify gains during bull runs can also exacerbate drawdowns when sentiment turns.
Recent research notes on digital asset-related companies illustrate the sector’s sensitivity to pricing swings in underlying tokens like Bitcoin, Ethereum, and Solana. In one example, analysts cited sector headwinds and weaker pricing as reasons for cutting estimates on firms that hold large treasuries of digital assets, even while highlighting longer-term valuation opportunities if market conditions stabilize.[1] Those dynamics underscore that any price target, including Lee’s 177% upside scenario for Ethereum, is contingent on broader market health and investor risk appetite.
Regulatory clarity also remains a key variable. Policymakers across major jurisdictions are still defining frameworks for stablecoins, crypto exchanges, and tokenized securities. Outcomes in these areas could either accelerate institutional adoption of Ethereum-based applications or create new hurdles for growth, depending on how rules are implemented.
How Lee’s Call Fits Into the Broader Crypto Narrative
Lee’s Ethereum forecast joins a growing list of high-profile price calls from Wall Street strategists and digital asset specialists who see blockchain technology as a structural, long-term theme despite periodic downturns.[2][3][5] Supporters argue that innovations in programmable money, decentralized governance, and on-chain financial products may reshape parts of the global financial system over the coming decade.
At the same time, skeptics point to recurring boom-and-bust cycles, unresolved regulatory questions, and the possibility that newer blockchains or off-chain technologies could eventually challenge Ethereum’s dominance. For now, however, Ethereum retains a commanding share of developer activity and locked-in value across major decentralized finance protocols, reinforcing its central role in Lee’s outlook.[1]
Whether Ethereum ultimately reaches the $9,000 level by early 2026 remains uncertain, but Lee’s 177% upside scenario encapsulates the optimism of a segment of the market that views crypto not as a passing trend, but as a foundational layer for future financial and digital infrastructure.[1][2][5]