The ETH divide: Tom Lee’s ‘$5K Ethereum’ call meets $542M in ETF outflows

As Q4 kicks off, price forecasts for cryptocurrencies are growing more optimistic. The CEO of BitMine Research, Tom Lee, expects to see $5000 ETH by the end of the year.

Bitmine has passed the threshold of 6 million ETH in terms of total treasury reserves, demonstrating the importance of the company’s Ethereum bet. Adding to the optimism, BMNR stock grew by more than 70% quarterly.

Given this context, bullish speculation on ETH is intensifying. As AMBCrypto recently reported, ETH’s long positions on Bitfinex have reached their highest level in four years, while the Long/Short Ratio hit a weekly peak of 1.12, suggesting a clear bullish bias.

Adding to the momentum, another trader has now opened a $43.4 million ETH long with 25x leverage, entering at around $2,500.

Technically, with ETH rising from the trader’s entry price of $2,543 to $2,560, the $43.4 million leveraged long position is sitting on an estimated $289,800 in unrealized profit. This equates to roughly a 16.7% return on the estimated margin at 25x leverage, before fees and funding costs.

From a position perspective, that’s a 17% return from merely a 0.67% ETH price move.

In essence, this demonstrates the leverage’s potential to magnify gains. So, with Tom Lee eyeing $5,000 ETH by year-end, the bullish outlook could only fuel more long-position momentum as traders bet on further upside.