Why is it possible for Ethereum to reach a value of $1.5 million?
Eric Jackson, founder of EMJ Capital, predicted that the price of Ethereum (ETH) will eventually reach $1.5 million per token.
Jackson believes that the approval of exchange-traded funds (ETFs) for Ethereum and the growth of cryptocurrency-based trading could drive the price of the altcoin higher.
What could drive ETH to $1.5 million?
In his latest analysis, published via X (formerly known as Twitter), Jackson argued that Ethereum is "undervalued." According to him and the EMJ Capital model, the price could reach $10,000 by the end of this cycle in a baseline scenario. Moreover, the bullish scenario suggests it could reach $15,000.
"None of this assumes a huge new breakthrough in DeFi or NFTs or an explosion in stablecoins like CRCL on ETH or an explosion in L2's HOOD and COIN's BASE to keep money in the cryptocurrency world instead of migrating back and forth to fiat currencies," he mentioned.
But what will cause this massive rise? Well, in the current cycle, Jackson pointed out that the approval of the exchange-traded Ethereum fund (ETF) will be a key catalyst for Ethereum's growth:
Most people believe that the approval of the ETH exchange-traded fund is a given, and it has been a significant failure compared to Bitcoin (in terms of ETHA vs. IBIT). This is not true. The real catalyst is still to come: staking approval, expected before October. Once that happens, ETH will become the first exchange-traded fund that generates yields in U.S. history, he wrote.
Jackson explained that this development will attract negative institutional flows, increasing the demand for staking, as institutions seek to benefit from staking yields. The staking process and the demand for exchange-traded funds will reduce the circulating supply of Ethereum, increasing the scarcity and its prices.
He noted that all of this contributes to Ethereum's "deflationary tokenomics." Furthermore, the growth of Layer 2 solutions and the tokenization of real assets will increase Ethereum's value by raising transaction fees.
Once Ethereum becomes an income-generating asset and is locked within an exchange-traded fund... it is no longer just "digital oil." It has become a product with a suitable yield for institutions, Jackson stated.
The executive also believes that the value of Ethereum 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 financial system based on cryptocurrencies will drive its price significantly higher over time.
I believe that if you believe in CRCL, COIN (the base), SHOP, and HOOD, and part of the trade remains based on cryptocurrencies and moves away from traditional currencies, then you believe in ETH. But if you believe in traditional currencies, credit cards, and traditional banks, then you do not believe in it. If this shift to ETH trading actually happens (and I believe it will), ETH will eventually reach $1.5 million, he added.
Meanwhile, other analysts share Jackson's optimism. Merlin the Trader noted that Ethereum is following a pattern similar to its price performance in 2016. However, this time, with exchange-traded funds, institutional investments, and global adoption, its potential...
