Tom Lee Predicts Ethereum Could Reach $16,000, Chainlink Eyes Major Breakout Rally

Tom Lee, co-founder of Fundstrat, has picked Ethereum over Bitcoin as his preferred investment asset. According to Lee, Ethereum has a next-generation core technology and could reach $16,000 if it experiences a similar upward momentum to what was seen in 2017.

After the sharp price dip at the beginning of the month, the Ethereum price is back on its bullish track. Also, analysts have predicted that Chainlink is nearing a major breakout rally that could take its price as high as $46, as exchange reserves have fallen to a new low.

Tom Lee Says the Ethereum Price Could Reach $16,000

Fundstrat’s Tom Lee has acknowledged Ethereum as a better long-term investment than Bitcoin. Lee’s comments came in the course of an interview about BitMine increasing its ETH holdings. Recently, BitMine, with more than 833,000 ETH, launched a $1 billion equity redemption initiative to buy Ethereum.

Lee also remarked that the Ethereum story of investment is more exciting now than it was five years earlier. He referred to ETH as the “largest macro trade,” as he noted that Wall Street is moving to stablecoins and BlackRock is set to launch its BUIDL on Ethereum as evidence of increasing institutional interest in ETH.

Lee said that Ethereum might surge to price levels of $16,000 in the event that the biggest altcoin manages to reach its old 2017 ETH/BTC ratio apex of 0.14. To add to the bullish sentiment, transactions on the Ethereum network have skyrocketed to a one-year high, Nansen Data shows.

Even the Ethereum market is responding positively as the ETH price has risen by 2.55% over the past 24 hours to surpass the $3,700 mark. According to Alex Clay, the correction seems to be over, and a breakout is imminent. The analyst believes the breakout could take the Ethereum price to a new ATH above $5,200.

Chainlink (LINK) Eyes Major Breakout Rally

Just like Ethereum, the current Chainlink (LINK) price action is signaling that a major rally could be around the corner. Per CoinMarketCap, the Chainlink price has increased by 2.6% on the 24H chart and is attempting to recover above the $17 resistance level.

In addition, CryptoQuant data shows that the amount of LINK tokens on exchanges has dropped to a new record low. According to CryptoQuant, 146.6 million LINK tokens are held on exchanges on August 7, compared to over 175 million on January 1, 2025.

The massive drop in Chainlink exchange reserve is a bullish signal that hints that investors believe that the LINK price could increase soon. A drop in exchange reserves often correlates with an increase in the price of a token. The popular crypto analyst on X, Ali_Charts, confirms this sentiment, saying that the Chainlink price has a clear path to $46.

As the Chainlink price currently trades at $16.8 in an ascending channel pattern, Ali explained that the only thing Chainlink has to do is defend the $13 support level. ChartNerd has predicted that this breakout could spark a rally that sends the Chainlink price as high as $100 for a new all-time high.