Ethereum Price Surpasses $3,000 as Tom Lee Predicts $250,000 in ETH

The price of Ethereum rose 4% in the last 24 hours, trading at $3,122, as daily trading volume jumped 119% to $24.5 billion.

This comes as Tom Lee, chairman of Ether-focused BitMine, wants shareholders to approve a big increase in the company’s authorized shares, from 50 million to 50 billion. He says this is necessary in case the price of Ethereum rises sharply and BitMine needs to split its shares in the future.

Lee explained that BitMine’s stock price closely follows Ethereum. He believes ETH could one day reach $250,000 if Bitcoin hits $1 million. If that happens, BitMine shares could reach around $5,000 each, which would be too expensive for most retail investors.

To keep the shares affordable, Lee says BitMine would need to do a significant stock split, possibly 100-for-1, to bring the stock price down to around $25. This type of split would require the existence of billions of shares. He stressed that approving more authorized shares does not mean the company will issue them immediately, but only allows some flexibility in the future.

BitMine transitioned from Bitcoin mining to an Ethereum treasury strategy in 2025. The company now holds over 4 million ETH, worth over $12 billion, and has begun banking on ETH to earn yield.

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These splits will increase the total number of shares outstanding.

Thus, BitMine will only be able to split shares in the future if the total authorized shares are increased.

– see table below
– the increase in authorized actions is necessary

Keep reading 📖… pic.twitter.com/4yCPGkeBjC

– Thomas (Tom) Lee (not the drummer) FSInsight.com (@fundstrat) January 2, 2026

Many people on social media have criticized the plan, saying it seems dilutive and unnecessary at this time. Lee responded that the move was aimed at combating “unit bias”, where investors focus on cheap stock prices rather than long-term value.

Ethereum Holds Above $3,100 as Bullish Momentum Strengthens

The ETH/USDT price action shows a clear bullish structure on the 4-hour chart, supported by strong momentum. ETH is trading around the $3,120 level, continuing a steady recovery after spending several weeks in a consolidation phase.

The chart highlights a major support zone between $2,700 and $2,850, referred to as a consolidation zone. This area acted as a strong base on which buyers repeatedly intervened, preventing further declines. Price has met this support multiple times, demonstrating strong demand and buyer confidence.

From this area, ETH began to form higher lows, signaling a shift from bearish pressure to bullish control. A parabolic curve visible on the chart shows a gradual but constant upward movement. This pattern suggests accumulation rather than a sudden spike, which is often healthier for lasting gains.

ETH has now surpassed the key psychological level of $3,000, which serves as near-term support. Staying above this level is important for the uptrend to remain valid.

ETHUSD chart analysis. Source: Tradingview

On the upside, the chart shows a clear resistance zone between $3,400 and $3,500. This area had previously rejected the price and could slow down the next upward move. If ETH maintains momentum above $3,100 and volume remains strong, a retest of this resistance zone is likely. A clear break above could open the door to a stronger rally.

The RSI (14) currently sits around 78, placing ETH in overbought territory. This indicates strong buying momentum, but also suggests the possibility of a short-term pullback or sideways consolidation before the next upward move.

An overbought RSI does not mean an immediate reversal, but traders should expect brief corrections. ETH remains bullish as the price remains well above the $3,000 support level. Any short-term decline towards support could attract buyers, keeping the broader uptrend intact.

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