Wall Street’s Tom Lee Calls Ethereum Rally to $5,500

• Ethereum hit a new all-time high near $4,885 and broke its November 2021 record for the first time in four years.

• Spot Ethereum ETFs recorded $2.12 billion in weekly inflows, and institutional buying continues to increase price momentum.

• Wall Street analyst Tom Lee targets $5,500 as technical indicators and whale accumulation support further gains.

Ethereum has reached unprecedented heights, setting a new all-time high near $4,885 over the weekend. The world’s second-largest cryptocurrency broke through its previous November 2021 record of $4,866, marking its first major milestone in nearly four years. The rally gained momentum following Federal Reserve Chair Jerome Powell’s Jackson Hole speech, which hinted at potential rate cuts.

The current price action represents a remarkable recovery from earlier 2025 lows. Ethereum has demonstrated exceptional strength, with the cryptocurrency trading significantly above key moving averages. Traders view this breakout as confirmation that institutional demand remains robust despite periodic consolidation phases.

Institutional Investment Drives Market Momentum

Spot Ethereum ETFs have emerged as a primary catalyst for the current bull run. These investment vehicles recorded over $2.12 billion in inflows during the past week, nearly doubling the previous weekly record. The cumulative total inflows have exceeded $13 billion since their inception, demonstrating sustained institutional appetite for Ethereum exposure.

Corporate treasury accumulation has also accelerated the upward price movement. Several major companies have begun following MicroStrategy’s playbook by adding Ethereum to their balance sheets. These strategic purchases represent a fundamental shift in how corporations view cryptocurrency as a treasury asset.

Wall Street analysts have taken notice of the sustained institutional interest. The combination of ETF inflows and corporate buying has created a supply squeeze supporting higher prices. This institutional adoption cycle is in its early stages, suggesting potential for continued growth.

Technical Analysis Points to Further Gains

Market technicians identify several bullish indicators supporting higher price targets. The successful break above the $4,866 resistance level eliminated a significant technical barrier that had contained price action for nearly four years. This breakout has established new support levels that could provide a foundation for additional gains.

Derivatives market data reinforces the optimistic outlook. Open interest in Ethereum futures has climbed steadily, reaching multi-month highs. This increased participation suggests growing confidence among traders. The funding rates in future markets remain positive, indicating continued buying pressure.

Whale activity has intensified alongside the price rally. Large holders have accumulated substantial positions worth hundreds of millions of dollars. This accumulation pattern typically precedes major price movements and suggests informed money expects further appreciation.

Prominent Wall Street analyst Tom Lee believes Ethereum could reach $5,500 in the coming weeks. His analysis points to the convergence of multiple bullish factors, including ETF inflows, corporate accumulation, and technical momentum. The $5,500 target represents approximately 15% upside from current levels.

A top Ethereum whale bought $164m worth of coins

The technical setup supports Lee’s bullish thesis. Ethereum has formed a pennant pattern following its breakout, historically leading to continuation moves. The next major resistance level sits at $6,250, representing the extreme overshoot level of Murrey Math Lines analysis.