Hayes: Ethereum to Hit $5,000 by Year-End on Attractive Market Positioning

Arthur Hayes, Chief Investment Officer of Maelstrom, is bullish on Ethereum (CRYPTO: ETH) and expects it to reach $5,000 by year-end. He believes the altcoin's underperformance has left investors underexposed while remaining liquid enough for institutions to establish significant positions.

Hayes' thesis does not hinge on Ethereum's Layer-2 roadmap or technology but rather on market positioning and liquidity. He expects U.S. Treasury actions, an expansion of the Federal Reserve's balance sheet, and similar policies globally to inject additional liquidity into financial markets, benefiting Bitcoin (CRYPTO: BTC) and ETH.

ETH has been lagging this cycle, leaving room for it to catch up after revisiting its 2021 all-time high. Hayes expects momentum to build as underexposed investors rush back in, making the trade increasingly reflexive.