Ethereum Could Reach $10,000 as Staking ETFs Boost Demand

Eric Jackson, the founder of EMJ Capital, has made a bold prediction that Ethereum could reach $10,000 in the near future and potentially even $1.5 million in the long run. This optimistic outlook is based on several key factors that Jackson believes will drive the price of Ethereum higher. One of the primary drivers is the anticipated approval of staking-enabled Ethereum ETFs in the United States. Jackson argues that this development, expected later this year, will significantly boost institutional demand for Ethereum. Staking-enabled ETFs would allow Ethereum holders to earn passive rewards, similar to earning interest, and would be the first U.S. crypto ETF to offer yield to both institutional and retail investors. This shift could transform Ethereum into a yield-generating financial asset within a regulated investment vehicle, making it an attractive option for traditional finance.

Jackson's model tracks several key factors that contribute to Ethereum's current market setup. These factors include a real staking yield of about 3.5%, which attracts steady investment, and a net-negative ETH issuance since the Merge, with more coins burned through fees than newly issued. Additionally, the expected approval of staking-enabled ETFs is anticipated to create significant new demand and help lower Ethereum’s supply. The rise of Layer 2 solutions and tokenized assets is also driving more network activity and fees, further tightening the supply and increasing demand for Ethereum. Based on this outlook, Jackson's team expects ETH to reach $10,000 by the end of this market cycle. If ETF demand and Layer 2 adoption exceed expectations, prices could even surpass $15,000.

While Bitcoin continues to draw attention, Jackson sees Ethereum steadily gaining ground as the backbone for digital transactions. He believes that Ethereum's deflationary setup and expanding role in the crypto economy make it a strong contender for this position. Companies like Circle, Coinbase, Shopify, and Robinhood are key players in driving this shift. If these platforms continue to grow and a significant portion of global commerce remains within the crypto system, Ethereum will benefit directly. Jackson contrasts this belief in Ethereum with reliance on traditional financial systems, such as credit cards, payment processors, and banks. If the trend moves toward blockchain-based commerce, he sees Ethereum playing a central role. And if that shift plays out fully, he projects that ETH could reach $1.5 million over time.

Although this long-range target is still distant, current activity in the Ethereum market continues to build steadily. Analysts like Ted Pillow believe that a move above $4,000 could trigger a much larger rally. This optimistic outlook is supported by the ongoing uptick in the price of ETH, which is currently trading above $3,000 and has seen a more than 2% increase in the last 24 hours. Jackson is convinced that the recent price is just the tip of the iceberg, and the best is yet to come for Ethereum.