Ethereum is once again at the center of a major macro forecast as the best crypto to buy in the dip – and this time, the upside could be historic. Fundstrat’s Tom Lee has predicted ETH may rally to $16,000 by year-end, calling it crypto’s own “ChatGPT moment.” 

As the ETH/BTC pair still trades 120% below his breakout threshold of 0.087, Ethereum now looks deeply undervalued on a relative basis. For traders eyeing the best crypto to buy in the dip, that kind of setup is hard to ignore.

Lee’s call is more than just optimism. It’s backed by a valuation model projecting Ethereum’s fair value between $12,000 and $22,000. This is based on historical ETH/BTC ratios and BTC price projections. 

With Bitcoin Hyper and Bitcoin currently dominating headlines with Bitcoin near $103K, the implied ETH value is lagging. But Lee sees that as the opportunity: if ETH returns to its 2021 high BTC ratio (0.0873), even a $150K Bitcoin would price ETH near $13,000.

Why Ethereum’s Relative Undervaluation Matters

Lee argues that Ethereum’s underperformance vs. Bitcoin is structural – and temporary. He draws comparisons to the 1971 end of the gold standard, when the U.S. dollar decoupled from gold but established a dominant financial empire. 

In that same vein, Ethereum is positioning itself as the base settlement layer for modern finance. His ETH/BTC thesis hinges on one number: 0.087. That’s the breakout level he believes would trigger an institutional shift toward Ethereum dominance. 

ETH/BTC is currently around 0.03654, meaning a 138% rally in the pair could ignite a broader ETH run – and potentially price Ethereum above $5,000 on technicals alone.

The “Alchemy of 5%” – Bitmine’s Massive ETH Bet

Backing Lee’s conviction is Bitmine, the firm where he serves as chairman. The company holds 3.24 million ETH, about 2.7% of Ethereum’s total supply. Their stated goal? Reach 5% total ownership – what Lee calls the “alchemy of 5%.” 

That level of accumulation would represent a new institutional standard, potentially rivaling the way ETFs hold gold or index funds hold blue-chip equities.

Bitmine’s Ethereum strategy aligns with Lee’s belief that ETH will become “bigger than any bank,” serving as the digital infrastructure layer for financial activity in a tokenized economy.

Stablecoins, Regulation, and Ethereum’s Tailwinds

A huge portion of Ethereum’s value now derives from stablecoins, with over $147 billion worth hosted on its network. More than 60% of all stablecoin issuance lives on Ethereum. That means the fees, settlement volume, and smart contract activity directly support ETH’s demand.

Lee predicts that the stablecoin market could balloon to $2 trillion in the next five years. With regulatory clarity improving – especially after the Genius Act passed under President Trump – the stablecoin space may finally see institutional capital flow freely. 

That transition from “Wild West” to Wall Street rails could cement Ethereum as the default financial layer.

And the network’s uptime matters: “Ethereum’s had zero downtime. That’s what matters to Wall Street,” Lee stated. For legacy finance firms, reliability is everything. Ethereum has quietly built the track record they need.

But What About the Risks?

Not everyone is sold. Lee’s forecast comes with caveats:

• Competition: Faster, cheaper chains like Solana are rising.

• Government digital currencies: A US CBDC could crowd out Ethereum’s stablecoin utility.

• Lee’s track record: He predicted $200K Bitcoin in 2022 – it ended near $16K.

Skeptics also point to Ethereum’s reliance on future ETF approvals and staking incentives, which could shift quickly if market conditions tighten or regulators change course.

Still, it’s the valuation gap that drives the bull case. At Bitcoin $250K, Ethereum’s projected value ranges from $11,965 to $21,818. That’s a massive upside from today’s prices under $2,000.

Institutions Are Positioning – Is Bitcoin Hyper the Hedge?

While Ethereum consolidates, newer presales are rapidly gaining momentum. One standout? Bitcoin Hyper.

In just days, the project has raised over $25.85 million, nearing its current target of $26.1M with a token price of $0.013225. The timing couldn’t be sharper – capital is clearly rotating into assets with perceived asymmetric upside while majors stall.

Bitcoin Hyper taps into the same institutional narrative as Ethereum: transparency, settlement efficiency, and high composability. But unlike ETH, it’s early. And for dip-buyers or risk-on traders, early often means exponential.