Arthur Hayes: Ethereum has significant room for a catch-up rally; once it breaks through $3,000, the next target is $5,000.

Arthur Hayes told Laura Shin during a podcast appearance that ETH is one of the most despised large-cap altcoins in the market. As the second-largest cryptocurrency by market capitalization, it has yet to break through its 2021 all-time high. From a risk-reward standpoint, at least in how he manages portfolios at Maelstrom, ETH is currently his largest position outside of Bitcoin. “I’m not particularly worried about waking up one day to find ETH has gone to zero. Of course, that scenario could occur, but that risk is far lower compared to other cryptocurrencies, so I’m very comfortable allocating a large position to this trade. Since it has not rallied much in this cycle, I believe it has significant catch-up upside. Once it starts moving higher, the reflexive momentum train will kick in. There are so many people who want to go long ETH for various reasons, and there were very valid justifications for why they didn’t do so in past years,” Hayes noted. He added: “Once we break through the $3,000 level, I think you will truly see ETH’s rally get underway, and it could quickly surpass $5,000. My year-end target is within reach.”