Eric Jackson, founder of EMJ Capital, predicted that Ethereum, the second-largest cryptocurrency by market capitalization, could potentially rise to as much as $1.5 million per token over time.

Jackson cites key upcoming catalysts, particularly the anticipated approval of Ether staking exchange-traded funds in the U.S. and the growing integration of Ethereum’s blockchain by major financial and technology companies, as drivers that could trigger massive upward momentum for ETH.

In a detailed series of posts on the social media platform X on Sunday, Jackson explained the rationale behind his bullish outlook. He emphasized that despite Ethereum’s robust fundamentals, the asset remains significantly undervalued by the market.

“Our analysis suggests the ETH network is underpriced,” Jackson stated, adding, “Ethereum is quietly becoming the dominant rail system for crypto transactions, bolstered by deflationary economic policies built into its framework.”

Jackson’s comments spotlight Ethereum’s transition to a deflationary asset following its merge to Proof-of-Stake consensus in September 2022. This transition introduced mechanisms such as the burning of transaction fees, which reduce the circulating supply and enhance ETH’s appeal as a potential store of value.

Upcoming Staking ETF Approval a Major Catalyst

One of the most critical upcoming developments for Ethereum, according to Jackson, is the anticipated approval by the U.S. Securities and Exchange Commission (SEC) of ETFs that incorporate Ether staking. While the SEC allowed Ether ETFs in July 2024, products specifically offering staking functionality have yet to receive regulatory clearance. Analysts widely expect this approval to occur by October 2025.

Jackson argues that market participants are significantly underestimating the potential impact of these staking ETFs. “Many wrongly believe ETH has already priced in the approval of U.S. ETFs. They have been seen as disappointing compared to Bitcoin ETFs,” Jackson pointed out.

He emphasized that Bitcoin ETFs have seen significantly more trading volume - $6.9 billion compared to $1.41 billion for Ethereum ETFs, per data from CoinGlass. However, Jackson argues that Ethereum’s true potential remains untapped, and staking functionality will dramatically alter institutional demand dynamics.

“The real catalyst is still ahead: staking approval, expected before October. Once ETH becomes a productive, staked asset within an ETF wrapper, it transforms from mere 'digital oil' into an institutional-grade yield product,” Jackson explained.

Institutional and Commercial Adoption to Drive Price Surge

Jackson highlights institutional adoption as a pivotal driver for Ethereum’s long-term valuation. Prominent companies such as stablecoin issuer Circle Internet Group, cryptocurrency exchange Coinbase, e-commerce giant Shopify, and trading platform Robinhood are all deeply integrated into Ethereum's blockchain ecosystem.

According to Jackson, if traders and institutional investors continue to see robust growth in these companies and embrace the shift towards crypto-based commerce, Ethereum’s valuation could skyrocket. He underscores the role of these companies in driving mainstream adoption, noting that their continued expansion into blockchain-based solutions reinforces Ethereum’s fundamental value.

“If traders believe in the sustained growth of these firms and expect commerce to progressively migrate from fiat to crypto, then they inherently believe in Ethereum's potential. If this conversion genuinely materializes - and I strongly believe it will - then Ethereum could reach $1.5 million over time,” Jackson elaborated.

DeFi, Layer-2, and Stablecoin Expansion Could Amplify Gains

Jackson’s base-case scenario projects Ethereum reaching around $10,000 by the conclusion of the current bull cycle, which is expected to peak around March 2026 based on the four-year crypto market cycle. In his bullish scenario, Ethereum could surpass $15,000, particularly if layer-2 blockchain adoption accelerates and if new staking approvals anticipated before October exceed current expectations.

Jackson further noted that his predictions currently exclude additional significant upside potential from decentralized finance (DeFi) innovations, stablecoin expansion, or increased adoption of Robinhood’s and Coinbase’s layer-2 networks. Should these additional catalysts materialize, Ethereum’s valuation could experience exponential growth, making ETH a "100-bagger," or an asset appreciating over 100 times its current price.

At the time of writing, Ethereum trades around $3,040, marking an increase of approximately 2.8% in the past 24 hours. Ethereum’s recent upward movement aligns closely with Bitcoin’s strong performance, as BTC recently hit an all-time high above $120,000. This tandem rally underscores robust market sentiment across major cryptocurrencies, suggesting growing investor confidence despite lingering macroeconomic uncertainties.

Market Reactions and Expert Opinions

The cryptocurrency community has shown mixed reactions to Jackson’s extremely bullish forecast. While some market participants view the $1.5 million prediction as overly optimistic, many acknowledge the credibility of EMJ Capital and recognize the validity of underlying market catalysts identified by Jackson.

Industry experts also note the continued institutionalization of Ethereum, highlighting recent acquisitions of large ETH positions by asset managers like BlackRock, which now controls approximately 1.5% of Ethereum’s total supply. Such institutional commitments reinforce Ethereum’s perceived long-term stability and attractiveness as a strategic investment asset.

Investors and analysts are closely monitoring Ethereum’s forthcoming developments, especially regulatory approvals related to staking ETFs. Market participants should remain vigilant to the SEC’s decisions and broader institutional adoption trends, as these will likely dictate Ethereum’s trajectory in the near to medium term.

While Jackson’s forecast represents an optimistic projection based on specific bullish catalysts, investors are advised to balance enthusiasm with caution, considering Ethereum’s historical volatility and potential regulatory and macroeconomic risks.