Fundstrat Tom Lee Predict Ethereum Price Surge as L1 & L2 Network Rise

Tom Lee Predict Ethereum Price and Bitcoin Stability: Recently, Tom Lee, Chairman of Ethereum Treasury company BitMine and Fundstrat head of research, appeared on CNBC to give his perspectives on the stability of BTC and ETH on-chain activity. His observations are indicative of a good foundation and a possible price increase in the future.

Bitcoin Remains Solid in the Huge Liquidation of the market.

Although it was the biggest liquidation and deleveraging event in crypto history, Bitcoin fell by only 3-4% which is significantly smaller than expected. Tom pointed this out as an indicator of the strength of Bitcoin as a store of value.

He likened the incident to the FTX meltdown, which, despite several instances that were similar to the downfall of FTX, resulted in only slight losses to Bitcoin.

Source: Tom Lee X

According to Lee, such performance implies better liquidity in the market, which enhances investor confidence. He also said that in case a similar situation arose in the gold market, a small percentage decline would also be regarded as a significant confirmation of value stability.

Ethernet Traffic Soars on L1 and L2 Blockchains.

Bitcoin is stable, but Ethereum is experiencing a fast growth of on-chain activity, both on Layer 1 (L1) and Layer 2 (L2) networks. The primary cause of this expansion is the use of stablecoins and scalability enhancements of L2 platforms.

Ethereum m registered a 44% point growth in the volume of transactions in August 2025, with the figure reaching $320 billion in the same month last year.

The number of daily active addresses on the Ethereum network has also reached 1 million, indicating that users have adopted and are engaging in large numbers.

ETH Price Not Ready to Showcase Good Fundamentals.

Despite the strong network activity, the Ethereum price today is at $3951.95 , down by 0.49 % in the last 24 hours, with a $476 billion market cap and $27.7 billion in trading volume.

According to Tom Lee, the market is yet to receive the improvements, although he believes that fundamentals will eventually affect the price. He highlighted that Layer 2 scalability solutions have also helped increase the total Ethereum activity by 20% this year, which also speaks to long-term potential.

Source: CMC

Tom Lee's Bullish Forecast

According to the ETH activity and market dynamics, the chairman of Fundstrat predicts a strong price run, and ETH will hit 5,500 by the end of 2025. His outlook is driven by:

• 1 million daily active addresses.

• Constant increase in the Layer 2 usage and scalability.

• Total network traffic increased by 20% in 2011.

Lee further attributed the strength of Ethereum to the greater crypto recovery indicators after the summer deleveraging, which can further bolster the uptrend of ETH in the case of the Federal Reserve rate cut , as expected.

Conclusion

The observations of Tom Lee highlight an increasing deviation between the underlying principles of the network and its present MV. The slight drop of Bitcoin on the biggest liquidation event in history underscores its consistency as a digital store of value.

With ETH experiencing an increasing number of activities both in L1 and L2 networks, the crypto market might be heading to a major bullish period in the next few months.