Why is it possible for Ethereum's value to reach $1.5 million?

👈 💡📉👈 Yes, it is possible 👁️👇✅

Eric Jackson, founder of EMJ Capital, predicts that the price of Ethereum (ETH) will eventually reach $1.5 million per token.

Jackson believes that the approval of Ethereum ETFs and the growth of crypto-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 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 base scenario. Furthermore, the bullish scenario suggests it could reach $15,000.

"And none of this assumes a massive new breakout 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 crypto world instead of migrating back and forth to fiat," he mentioned.

But what will cause this massive increase? Well, in the current cycle, Jackson pointed out that the approval of the Ethereum exchange-traded fund (ETF) will be a key driver for Ethereum's growth.

Most people believe that the approval of the ETH exchange-traded fund is a foregone conclusion, and it has been a dismal failure compared to Bitcoin (in terms of ETHA versus IBIT). That is not true. The real catalyst is still coming: the approval of staking, expected before October. Once that happens, ETH will become the first exchange-traded fund to generate yields in U.S. history, as he wrote.

Jackson explained that this development will attract negative institutional flows, increasing demand for staking, as institutions seek to benefit from staking yields. The staking process and demand for ETFs will reduce the circulating supply of Ethereum, increasing the currency's scarcity and its prices.

He noted that all of this contributes to Ethereum's "contractionary token economics." Moreover, the growth of layer two solutions and tokenization of real assets will increase Ethereum's value by increasing transaction fees.

Once Ethereum becomes an income-generating asset and is locked inside an exchange-traded fund... it is no longer just a "digital oil". It has become a product with an appropriate yield for institutions, as 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, HOOD, and part of the trade remains based on cryptocurrencies and moves away from traditional currencies, you believe in ETH. If you believe in traditional currencies, credit cards, and traditional banks, you do not believe in it. If this shift to ETH trading does happen (and I believe it will), ETH's price 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 ETFs, institutional investments, and global adoption, the growth potential is greater.

Ethereum deposits have reached an all-time high. Over 35.7 million Ethereum are now held. This means more than $100 billion is held. Out of trading. And no one is talking about it. While people chase meme coins, smart money accumulates and holds Ethereum. Don't doze off during this silent accumulation," Merlin revealed in another post.

It remains to be seen whether these predictions will come true. For now, Ethereum continues to achieve its weekly gains of 17.7%. BeInCrypto data showed that the second-largest digital currency saw a 2.73% increase over the past day. At the time of writing this report, the trading price of Ethereum was $3,034.

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