Tom Lee Predicts Strong Ethereum Rebound by 2026

Fundstrat’s Tom Lee expects a sharp recovery for Ethereum (ETH) in 2026, despite the cryptocurrency’s recent struggles. Lee, who is also Chairman of Bitmine Immersion Technologies and Managing Partner at Fundstrat Global Advisors, argues that current headwinds are temporary and that structural drivers remain intact.

Ethereum has lost nearly 28% year to date, while Bitcoin has dropped around 12%. But Lee attributes much of this decline to what he calls “short-term tactical noise” linked to the Middle East conflict.

Oil Prices and Middle East Tensions

Lee points to a strong inverse correlation between ETH prices and oil prices. Since the start of the conflict involving the U.S., Israel, and Iran, oil markets have seen increased volatility. This has pushed ETH lower, as the two assets moved in opposite directions. He believes this is a temporary phenomenon rather than a fundamental shift.

“These structural drivers are in place,” Lee said in comments reported by various outlets. He expects Ethereum to strengthen once the geopolitical situation stabilizes and oil prices normalize.

Tokenization and AI as Long-Term Catalysts

Beyond the geopolitical noise, Lee highlights two main factors that he thinks will support Ethereum in the coming years: tokenization and Agentic AI. Institutional interest in tokenizing real-world assets is growing slowly but steadily. Boston Consulting Group estimates that asset tokenization could exceed $16 trillion by 2030, reaching about 10% of global GDP. Ethereum is widely seen as the leading platform for this shift.

Ethereum co-founder Vitalik Buterin has also been pitching the ecosystem as an “economic layer for AI-related interactions.” In his view, the blockchain allows different AIs to transact economically with each other, which could enable more decentralized AI architectures. This is still early-stage speculation, but it adds another potential use case for the network.

Looking Ahead to 2026

Lee concludes that ETH prices should be “stronger as we move through 2026,” once the conflict in the Middle East ends. His view suggests that investors should look beyond the current volatility and focus on the long-term adoption trends. Of course, this is a prediction, and markets never move in a straight line. But for those with patience, Lee’s outlook is clearly bullish.

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