Fundstrat’s Tom Lee says Ethereum (CRYPTO: ETH) remains “vastly undervalued” even after its recent rebound, with a $6,000 price target contingent on Bitcoin (CRYPTO: BTC) reaching $150,000.

Lee described Ethereum’s move from roughly $1,900 to $2,500 over the past week as less of a short squeeze and more of a “course correction,” with crypto fundamentals broadly improving.

He argued that current Ethereum valuations still reflect conditions closer to a prolonged bear market, despite the token’s recent recovery in price.

Lee’s analytical framework centers on the ETH/BTC ratio, which he uses to project where Ethereum could trade relative to Bitcoin’s price trajectory.

He said a move in the ETH/BTC ratio to 0.04 would place Ethereum around $6,000 if Bitcoin reaches $150,000, representing a near-doubling of Bitcoin from current levels.

A return of the ratio toward 0.08, levels seen near the 2021 cycle highs, would imply substantially more upside for Ethereum beyond that $6,000 projection.

Lee’s broader thesis connects Ethereum’s potential to the ongoing shift of financial infrastructure onto public blockchains, driven by tokenized assets, stablecoins, and AI-related demand.

He argued that traditional financial infrastructure was built for humans rather than software agents making instant transactions, positioning public blockchains to absorb growing automated financial activity.

The view aligns with Lee’s role as chairman of BitMine Immersion Technologies (NYSE: BMNR), which has built one of the largest corporate Ethereum treasuries, now holding more than $14 billion worth of ETH.

BitMine is targeting ownership of 5% of Ethereum’s total network supply, underscoring the scale of its institutional commitment to the asset.

Ethereum’s rebound has already begun narrowing its performance gap against Bitcoin, though Lee’s $6,000 case still requires both assets to move materially higher from current levels.

Ethereum was trading at $2,432.38 per token, down 3.15% on the day, leaving significant ground to cover before either price target comes into view.