Ethereum Price Sees AI-Fueled Rotation Towards $2,000 Mark

Ethereum is trading around $1,925 as it tests a resistance zone that has capped its previous rallies. This price level has proven challenging for Ethereum to break through in July.

According to Tom Lee of Fundstrat, capital tied to the AI sector is rotating from chip stocks into Ethereum. He views ETH as the new digital infrastructure play for AI-focused portfolios.

The thesis argues that decentralized compute and data networks could attract capital previously favoring names like Nvidia. This narrative gained institutional support with the launch of the S&P Pantera Digital Asset Index, which applies S&P 500-style financial viability screens to crypto protocols.