Ethereum to $5,000? Tom Lee Flags ‘Major Breakout’ Setup as 2 Historic Rally Signals Flash

Key Takeaways

• Tom Lee says the ETH/BTC ratio has broken a multiyear downtrend.

• Ash Crypto says two bullish signals are approaching, last seen before Ethereum's explosive 2017 and 2021 advances.

• Lee sees ETH at $5,000 and Bitcoin above $100,000 remain possible in 2026.

Tom Lee says Ethereum can surge back above $5,000 before the end of 2026 — and he believes the first signs of a major turn are already flashing.

Meanwhile, other analysts have pointed to two even bigger market signals that also appeared before Ethereum's historic 2017 and 2021 rallies.

Could a major Ethereum and Bitcoin breakout be on the horizon?

Tom Lee Turns Bullish as Ethereum Nears a Technical Breakout

On Aug. 17, Lee highlighted a chart showing Ethereum roughly 3.5% below the top of its daily Ichimoku Cloud, a zone that has capped the asset since October 2025.

A sustained move above the cloud would be Ethereum's first such breakout in about 10 months.

"Would be good to see," Lee wrote on X.

Meanwhile, his more bullish signal was Ethereum's performance against Bitcoin.

In BitMine's update on the same day, Lee said: "We are encouraged to see the ETH/BTC ratio at 0.02994 and rising."

He added: "We expect easing financial conditions to be a tailwind for crypto."