Hayes Calls Ethereum Foundation 'Jokers', Still Sees ETH Reaching $5,000
Maelstrom's Chief Investment Officer Arthur Hayes has made headlines for his candid views on the Ethereum Foundation, calling it 'a bunch of jokers'. However, despite this criticism, he remains bullish on Ethereum (ETH), citing market positioning as the driving force behind its investment case. Hayes believes that a move above $3,000 could trigger reflexive buying and potentially send ETH toward the $5,000 level.
Hayes emphasized that his investment thesis is not based on the technology or governance of Ethereum, but rather on market structure and positioning. He pointed out that despite being the second-largest cryptocurrency by market capitalization, ETH has yet to eclipse its 2021 record high. The economics between the base chain and its Layer-2 networks, including gas fee revenue, are not what markets price, according to Hayes.
As Maelstrom's largest holding outside of Bitcoin (BTC), ETH is a significant position for the firm. Hayes believes that the risk of ETH going to zero is lower than other cryptocurrencies, making it an attractive investment opportunity. A break above $3,000 would likely trigger reflexive buying, after which ETH could quickly clear $5,000, according to Hayes.