The true uprising catalyst for ETH would be the approval of Staking in the ETFs.
“The Ethereum Network is undervalued,” says Jackson.
The current market cycle is being positive for Ether (ETH), the cryptocurrency of the Ethereum Network, which could not only mark a new historical maximum, but it could also arrive for the first time at a price of five figures, according to a model developed by the investment firm EMJ Capital.
Eric Jackson, founder of the company and market analyst, says That the true catalyst for the next great ETH rise has not yet occurred. Most of the market, he says, “assumes that the approval of ETH ETFs in the United States has already been completely incorporated into the price.
However, that vision ignores an element that, according to Jackson, will be key in the coming months: the approval of staking within these financial products.
Jackson argues that, if the Bag and Values Commission (SEC) enables the Staking option for ETF of Ethereum before October, as expected, another ETF of cryptocurrencies with yields with yields in the United States will be given life (there is already the ETF of Solana with Staking). According to the analyst, this condition would mark a turning point, to the Turn ETH into a passive income asset within the traditional financial system.
For Jackson, this would unleash a series of consequences: sustained flows from traditional finance, institutional performance generation, increased staking demand and a reduction in circulating offer. All these factors would be added to the deflationary nature of the Ethereum Network, deepening a structural shortage that, in the opinion of EMJ Capital, is still not recognized by the market.
It should be clarified that the Ethereum network is not always deflationary, since this depends on the protocol activity. In general, the greater the activity, greater burning of tokens. And at lower activity, lower tokens burning and potential inflation, consequently. Anyway, it is important to emphasize that inflation or deflation of this cryptocurrency is a percentage insignificant at the market level.
Among the elements highlighted by Jackson are a real profitability of ETH staking, of approximately 3.5%, the negative emission of ETH from the Merge of 2022, the growth of layers 2 and the real world asset token (RWA). In his opinion, these would be the drivers of the increase in network rates.
In the analyst’s opinion, this combination suggests that the Ethereum Net to become a “financial instrument of institutional degree.”
The EMJ Capital analysis does not contemplate an explosive growth scenario of decentralized finances or non -fungible tokens (NFT), nor a massive increase in the use of stablocoins. Even without those elements, Jackson argues that the demand derived from the new ETF model, combined with the current dynamics of the Ethereum ecosystem, It will be enough to cause a bullish rupture.
As a base, it projects a price of $ 10,000 per ETH in the near future. As an optimistic scenario, it provides that the value exceed $ 15,000 if the adoption of layers 2 and the entrances to ETF with staking exceed expectations.
While what Jackson says he focuses only on ETH, it must be taken into account that there are already cryptocurrency ETFs that have enabled the function of the staking. This is the case of the first Solana ETF that incorporates this strategy, which was launched on July 2. For financial analysts such as Mike Fay, it is “an inflection point for the market” because it opens new possibilities for investors.
Everything points to an upward bouncing for eth
Jackson’s narrative about Ethereum takes shape in a context that shows similar signals. As Cryptonoticia reported, the Ethereum network closed the month of June with record figures for accumulation and staking, although the price of the ETH cryptocurrency remained stable around $ 2,800.
According to Cryptoquant data, about 22.7 million ETH are in accumulation wallets, which reflects a strategic positioning by long -term investors. “Something big is coming,” said one of the reports of that analysis firm, when observing a clear divergence between the foundations and the market price.
Along the same lines, on July 9 there was a net entrance of 211 million dollars in the ETFs of Ethereum, the third largest of the year in terms of daily flows. This capital injection suggests that the expectation for a structural change remains latent. At the same time, ETH performance has been highlighted by analysts such as Fay, who pointed out that his 100% appreciation in the last three months responds to organic, non -speculative factors, and reinforces his viability as a long -term investment.
In technical terms, ETH has also given bullish signs. In June he consolidated a pattern known as the “Golden Cross”, a figure that in technical analysis is interpreted as confirmation of a sustained upward trend. This cross between 50 and 200 mobile socks, usually occurs when there is impulse in the demand for an asset.
Despite the expectation, the price of ETH remains 38% below its historical maximum of $ 4,890, reached in 2021as can be seen in the following graph:
“Ethereum is becoming the dominant system”
For Jackson, the attention that Bitcoin receives (BTC), especially now that he has exceeded $ 120,000, is understandable. However, he considers that ETH “is silently becoming the dominant rail system to perform cryptocurrency transactions with a deflationary economy.”
Jackson emphasizes that his model does not seek to foresee a speculative cycle similar to the previous ones. In his opinion, this time The narrative is not based on exaggerated expectationsbut in economic and financial foundations already underway.
EMJ Capital’s vision also incorporates elements of the macroeconomic context. According to Jackson, if cryptocurrency trade continues ETH potential in the long term could be much higher.
For now, the market is still expectant. The possibility that the SEC approves Staking in ETF could become the key event of the second semester of 2025. Until then, Jackson and Emj Capital maintain an upward position in ETH and its derivatives. They ensure that the movement could be abrupt and unexpected, so they consider, The key is to stay positioned.
