Ethereum falls 1% as Tom Lee predicts rally to $9,000 then $20,000

Ethereum price edged down more than 1% in the past 24 hours to trade at $2,927 as of 1:30 a.m. EST as trading volume fell 6% to $14.8 billion.

This comes as Tom Lee of Fundstrat claims that the price of Ethereum is poised for a rebound, predicting that the price of ETH could climb to between $7,000 and $9,000 in early 2026, while it would reach the $20,000 level in the long term.

These predictions come amid talk of a potential supercycle in the crypto space, although Lee cautions against overuse of the term.

“I don’t want to overuse the word supercycle,” Lee said.

TOM LEE FORECASTS $200,000 FROM BITCOIN AND $7,000-$9,000 FROM ETHEREUM IN 2026

Tom Lee said he expects Ethereum to reach between $7,000 and $9,000 in early 2026 and Bitcoin to reach $200,000 in the same year, with Ethereum possibly climbing as high as $20,000 over time. He added that although the… pic.twitter.com/z21nlo3YW5

– Crypto Town Hall (@Crypto_TownHall) December 27, 2025

Meanwhile, the price is still down 2% from last week.

This drop also carried over to spot Ethereum exchange-traded funds (ETFs). After seeing massive inflows on Monday, spot ETH ETFs have since recorded three consecutive outflows as Ethereum falls.

Can Tom Lee’s prediction come true, or is Ethereum about to see a continued decline?

Ethereum Price Faces Indecision in Consolidation Zone

THE ETH Price The bulls are in a period of indecision after the asset formed a rounded top pattern, after hitting an all-time high of around $4,940 in August.

After touching its ATH, Ethereum price then underwent a correction, completing the rounded top to fall into the $2,700 support zone.

This support zone has since acted strongly to keep the price of ETH trading in a sideways trend, capped by the $3,300 resistance from late November.

ETH remains under bearish pressure after forming a deadly crossover around $3,555 and is still trading below the 50-day and 200-day simple moving averages (SMA).

Additionally, the Relative Strength Index (RSI) is currently trading above the equilibrium 40 levels, currently at 43, and appears to be climbing, indicating that the ETH price is still in a neutral zone.

According to the ETH/USD chart analysis on the daily time frame, the ETH price is currently trading in a sideways consolidation trend.

If bulls use the current area as a demand zone, Ethereum could reach the $3,400 resistance zone, with a long-term target of around $3,584 in the 200-day SMA.

However, if the bears continue to exert pressure and close below the $2,700 support, the next possible cushion against downward pressure lies at the $2,200 mid-year support zone.

Crypto analyst Ali Martinez, with over 164,000 followers on

$1,700 Seems to Be a Great Place to Buy Ethereum $ETH! pic.twitter.com/JHiQ7Y8TqL

– Ali Charts (@alicharts) December 26, 2025

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