Ethereum traded near $2,463 on Aug. 24 after gaining 29.3% over seven days, outperforming Bitcoin’s 21.4% weekly advance as Fundstrat co-founder Tom Lee said the long-awaited Ethereum rotation had begun.
The market data does not support reports that $ETH gained more than 32% within 24 hours. Ethereum was up approximately 2.1% over the latest day, according to current price data. Its larger gain occurred across the full week.
Lee argued in an Aug. 24 Fundstrat post that the conditions supporting an $ETH rotation had developed over almost a decade. He expects tokenization, stablecoins and artificial intelligence applications to strengthen Ethereum’s role as a financial settlement network.
This is nearly a decade in the making$ETH https://t.co/fBSUdCr4Ex
— Thomas (Tom) Lee (not drummer) FundstratDirect.com (@fundstrat) August 23, 2026
Ethereum rotation appears in relative performance
Ethereum’s weekly gain exceeded Bitcoin’s by approximately eight percentage points. Based on prices around $2,463 for $ETH and $77,446 for Bitcoin, the $ETH/$BTC ratio stood near 0.0318.
A rising $ETH/$BTC ratio means one Ether can purchase more Bitcoin than before. It provides clearer evidence of relative strength than $ETH’s dollar price alone because both assets benefited from the broader cryptocurrency rally.
The ratio was near 0.02994 when BitMine discussed Ethereum’s relative performance in its Aug. 17 update. The subsequent increase supports Lee’s argument that capital has recently favored $ETH, although a short period of outperformance does not confirm a lasting rotation.
As previously reported, Ethereum began gaining against Bitcoin as tokenization and AI narratives strengthened. Ethereum had previously underperformed Bitcoin for much of 2026, leaving the current recovery with substantial ground to cover.
ETF flows provide evidence of institutional demand
U.S. spot Ethereum exchange-traded funds attracted $365 million in July, their strongest month since launching in 2024. Bitcoin funds received $205 million during the same period.
The result marked the first month when Ethereum ETF inflows exceeded Bitcoin ETF inflows by more than two to one. It supports the argument that some regulated investment demand shifted toward $ETH, although a single month does not establish a permanent allocation change.
In related coverage,Ethereum ETF inflows surpassed Bitcoin funds for the first time. Ethereum products also recorded $92.15 million of net inflows on Aug. 6 after receiving $60.86 million one day earlier.
More recent data showed combined Bitcoin and Ethereum funds attracting $2.6 billion during their strongest week since October. The flows indicate broader institutional demand for both cryptocurrencies rather than a complete move away from Bitcoin.
Tom Lee’s $10,000 Ethereum target remains speculative
Lee said $ETH could “easily” exceed $10,000 over the next one or two years. Reaching that level from $2,463 would require an increase of approximately 306%.
The forecast assumes Ethereum will become a central settlement layer for tokenized securities, stablecoins, decentralized finance and AI-linked financial activity. These sectors may increase network use, but greater adoption does not automatically translate into an equivalent $ETH price increase.
Lee has previously issued more aggressive forecasts, including a long-term estimate of $250,000. Neither target represents company guidance, a guaranteed outcome or a valuation supported by an agreed industry model.
Ethereum also faces competition from Solana, dedicated institutional networks and Ethereum-compatible layer 2 systems. Transaction activity can move to those networks without producing proportional fee revenue or token demand on Ethereum’s base layer.
BitMine gives Lee direct exposure to the thesis
Lee serves as chairman of BitMine Immersion Technologies, a U.S.-listed company pursuing an Ethereum treasury strategy. BitMine’s latest release reported holdings of 5,815,164 $ETH as of Aug. 16.
The company valued the position using an $ETH price of $1,893 and said it represented approximately 4.8% of Ethereum’s estimated 120.7 million supply. BitMine is targeting ownership of 5% of the total supply.
As crypto.news reported, BitMine added 9,926 $ETH and raised its holdings to 5.82 million tokens. It had staked 5,067,309 $ETH, or approximately 87% of its treasury.
BitMine projected about $250 million in annualized staking revenue using a recent 2.61% yield. The figure is a company estimate because staking rates, validator performance and $ETH prices can change.
Lee also argues that a well-managed digital asset treasury could outperform $ETH through staking income and capital-market activity. However, BMNR carries additional risks, including operating expenses, debt, equity issuance and the possibility that its shares trade below the value of its assets.
What happens next for Ethereum?
Ethereum must sustain its relative gains for the rotation argument to strengthen. Traders will watch whether the $ETH/$BTC ratio remains above 0.030 and whether $ETH holds the recent breakout area around $2,400.
The next price resistance sits near $2,500. A sustained move above that level could extend the recovery, while a loss of $2,400 would weaken the immediate structure.
ETF flows will provide another test. Continued Ethereum fund inflows alongside a rising $ETH/$BTC ratio would offer stronger evidence of allocation changes than price performance alone.
BitMine’s next weekly disclosure will show whether the company continued purchasing $ETH as it approached its 5% supply target. Ethereum remains roughly 50% below its August 2025 record of $4,946, making Lee’s $10,000 forecast dependent on a recovery far beyond the latest weekly rally.
