- Joseph Chalom says Ethereum’s programmability makes ETH the strongest collateral for institutions.
- Ethereum’s market cap has historically tracked half the value of assets secured.
- Short-term resistance seen at $4,475–$4,612; possible move toward $4,900 ahead.
Ethereum is gaining strong conviction from Joseph Chalom, the former head of crypto at BlackRock. Chalom says Ethereum (ETH) is not only undervalued today but has the potential to become what he describes as “high-octane money” in the financial system of the future.
He argues Ethereum is different from Bitcoin because of its programmability. While Bitcoin is often seen as a store of value, Ethereum powers applications, decentralized finance, and tokenized real-world assets. “Institutions should think of ETH not just as an asset but as the strongest collateral to hold on a balance sheet,” he said in an interview with Bankless.
Simple Framework for Valuing a $41,000 Ethereum
Chalom bases his bullish view on a clear pattern. Over the past five years, Ethereum’s market cap has closely tracked the growth of assets secured on the network.
“For every $2 of high-quality liquid assets secured on Ethereum, ETH’s market cap has historically risen by about $1. In any forecast, the price of Ether is going to be significantly higher than it is today,” Chalom said.
Another expert explained his view by linking Ethereum’s value to the assets built on top of it. He said if $10 trillion worth of assets move onto Ethereum, then ETH itself could reach a $5 trillion market cap, which would equal about $41,400 per ETH.
Related: ETH Price Analysis: Key Differences Between 2025 Cycle and the 2021 Top
Ethereum Short-Term Price Prediction
Why is the $4500 Level Important?
Ethereum recently bounced from one of its support areas, giving a hint of upside momentum. Resistance levels to watch are between $4,475 and $4,612, with additional selling pressure likely around the $4,500 mark.
If Ethereum pushes higher from here, it could move toward the $4,800 to $4,900 range, but the market is still choppy and rangebound. The analyst said that the bounce market has seen so far looks corrective, meaning it might just be part of a short-term move rather than a bigger breakout.
Related: Ethereum Hits Record Highs With 50 Million Transactions in a Single Month
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