EMJ Capital founder Eric Jackson predicts that the price of Ethereum (ETH) will eventually reach $1.5 million per token.
Jackson believes that the approval of Ethereum-based exchange-traded funds (ETFs) and the growth of cryptocurrency-based trading could drive the altcoin's price higher.
What could push ETH to $1.5 million?
In his latest analysis, published via X (formerly Twitter), Jackson argued that Ethereum is "undervalued." According to him and his EMJ Capital model, the price could reach $10,000 by the end of this cycle in a base case scenario. Furthermore, a bullish scenario suggests it could reach $15,000.
“None of this assumes a new massive DeFi or NFT breakout or an explosion in stablecoins like CRCL on ETH or an explosion in L2’s HOOD and COIN’s BASE to keep funds in the crypto world instead of migrating back and forth to fiat,” he stated.
But what will cause this massive surge? Well, in the current cycle, Jackson pointed out that the approval of an Ethereum exchange-traded fund (ETF) will be a major catalyst for Ethereum's growth:
Most people believe that the approval of an ETH exchange-traded fund (ETF) is a given, and that it would be a resounding failure compared to Bitcoin (in terms of ETH assets versus IBIT). This is not true. The real catalyst is still to come: participation approval, expected before October. Once this happens, ETH will become the first yield-generating ETF in US history, he wrote.
Jackson explained that this development will attract negative institutional flows and increase demand for staking, as institutions seek to capitalize on staking returns. The staking process and demand for ETFs will reduce the circulating supply of Ethereum, increasing the coin's scarcity and price.
He noted that all of this contributes to Ethereum's "deflationary token economics." Furthermore, the growth of layer-two solutions and the tokenization of real assets will increase Ethereum's value by increasing transaction fees.
Once Ethereum becomes a yield-generating asset and is locked into an ETF, it will no longer be just “digital oil.” It will become a product with a suitable return for institutions, as Jackson stated.
The CEO also believes that Ethereum's value could reach $1.5 million in the long term. His prediction is based on his belief that Ethereum's pivotal role in an emerging decentralized cryptocurrency-based financial system will drive its price to significant increases over time.
"I believe that if you believe in CRCL, COIN (the basis), SHOP, and HOOD, and if some of the trading remains cryptocurrency-based and shifts away from traditional currencies, then you believe in ETH. If you believe in traditional currencies, credit cards, and traditional banks, then you don't believe in them. If this shift to ETH trading actually happens (and I believe it will), then ETH will eventually reach $1.5 million," he added.
Meanwhile, other analysts share Jackson's optimism. Merlin the Trader notes that Ethereum is following a similar price pattern to its 2016 performance. However, this time, with ETFs, institutional investment, and global adoption, the potential for growth is greater.
Ethereum holdings have reached an all-time high. Over 35.7 million ETH are now locked up. That's over $100 billion locked up. Out of circulation. And no one is talking about it. While people are chasing meme coins, the smart money is accumulating and locking up ETH. Don't fall asleep during this silent accumulation," Merlin revealed in another post.
It remains to be seen whether these predictions will be fulfilled. Currently, Ethereum continues its weekly gains of 17.7%. BeInCrypto data shows that the second-largest cryptocurrency saw a 2.73% increase over the past day. At the time of writing, Ethereum was trading at $3,034.