Ethereum’s (ETH) latest surge has drawn renewed optimism from Tom Lee, chairman of Bitmine Immersion Technologies and long-time crypto bull. Lee predicts ETH could reach $5,500 in the coming weeks, with a year-end target between $10,000 and $12,000.

His bold forecast comes on the heels of Ethereum’s all-time high of $4,955 on August 24, as per Bitstamp data. Despite a sharp pullback to $4,314 over the next two days, ETH has since recovered, trading around $4,620 on August 27.

Lee cites historical market trends, noting that Q4 often delivers outsized crypto gains. “The final quarter of the year is when the strongest upward movements typically occur,” he emphasized.

Bitmine’s ETH Accumulation Fuels Bullish Momentum

Adding weight to his projection, Bitmine Immersion Technologies—Lee’s own ETH treasury company—acquired 4,871 ETH on August 26, swelling its holdings to 1.72 million ETH.

This aggressive accumulation, according to some analysts, is not just a reflection of bullish conviction but also a market driver in itself.

On-chain expert Willy Woo highlighted that daily inflows into ETH now average ~$900 million, rivaling Bitcoin’s (BTC) inflows. He attributes part of this surge to Bitmine’s buying spree, suggesting that corporate treasuries are reshaping ETH demand.

Capital Rotation From Bitcoin to Ethereum

ETH’s strength also stems from capital rotation away from BTC. With Bitcoin consolidating below its highs, investors appear to be reallocating toward Ethereum, betting on its expanding role in DeFi, staking, and ETF adoption.

Such flows, Woo noted, “started when Tom Lee’s ETH treasury company, Bitmine, began its accumulation.” This suggests that institutional players are increasingly comfortable viewing Ethereum as a co-leader alongside Bitcoin.

September Volatility Ahead: Buy the Dip?

Lee acknowledges the risks ahead, particularly in September—a month historically linked with market pullbacks. However, he frames any potential dip as a strategic entry point rather than a warning sign.

“Of course as you know, September is the month that everyone is gonna be worried about because that’s the month you might get a pullback. But you need to be buying that dip,” Lee said in a recent interview.

This sentiment echoes broader market behavior, where dips during bull cycles are often seized as opportunities to average into long positions.

The Bigger Picture: ETH as “Institutional Blue Chip”

Ethereum’s record-breaking inflows, corporate treasury adoption, and Q4 seasonality align with Lee’s bullish thesis. If his forecast proves accurate, ETH could double or even triple by year-end, potentially reaching the $12,000 mark.

Such a move would cement Ethereum’s role as the institutional “blue chip” of altcoins, reinforcing its dual narrative as both a store of value and a productive yield asset via staking.

Bottom Line

Tom Lee sees Ethereum’s recent volatility as a stepping stone toward exponential gains. With corporate treasuries like Bitmine adding aggressively, capital flows rotating from Bitcoin, and ETF demand strengthening, ETH may be poised for its most decisive quarter yet.

For investors, the message is clear: expect turbulence in September, but keep eyes on the horizon—$10K to $12K ETH is the target.