Key Points:
- Standard Chartered bank’s Head of Digital Assets Research, Geoff Kendrick, envisions Ethereum surging beyond $8,000.
- Kendrick believes Ethereum may outperform Bitcoin, expecting a 5x increase in value compared to Bitcoin’s 3.5x.
- The forecast anticipates Ethereum’s climb to $35,000 between 2025-2026, driven by emerging use cases and Layer 2 solutions.
Ethereum has faced challenges in tandem with Bitcoin amid the ongoing bear market, but this hasn’t deterred optimistic outlooks for the digital asset. The most recent bullish projection hails from the British multinational bank, Standard Chartered, which envisions the Ethereum price surpassing $8,000.
Driving Factors for This Upward Trajectory
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered Bank, has unveiled his Ethereum price forecast in a research report. According to Kendrick, he envisions a promising future for the digital asset, with the potential to surpass $8,000 in the years to come.
Regarding Ethereum’s valuation, Kendrick emphasizes the multitude of use cases that have emerged over the years and anticipates further use cases evolving with time. One such area of growth is the highly sought-after gaming and asset tokenization sector.
Moreover, the Standard Chartered researcher suggests that Ethereum is poised to experience greater growth compared to the pioneering cryptocurrency, Bitcoin. While Bitcoin is expected to increase by a factor of 3.5, Ethereum is forecasted to surge by a factor of 5 from its current levels.
“We anticipate that the ascent in ETH prices may take more time compared to BTC, but we foresee ETH eventually reaching a higher price multiple relative to current levels (5.0x versus 3.5x),” noted Kendrick.
He also holds the belief that Ethereum will further solidify its dominance in the space, particularly with the emergence of Layer 2 blockchains like Arbitrum, designed to enhance the network. Kendrick anticipates this development will lead to an augmentation in Ethereum’s profit-earnings ratio (P/E ratio).
Ethereum’s Potential to Exceed $8,000
In terms of actual price values, Kendrick’s Ethereum price projection extends beyond the $8,000 mark. The outlook for Ethereum’s value spans into the five-digit range, with Kendrick suggesting that ETH could surge anywhere from $26,000 to $35,000.
As for the anticipated timeframe, Kendrick appears to be eyeing the next bullish market cycle, expecting the catalysts for this value appreciation to materialize between 2025 and 2026. “We consider the $8,000 level as a stepping stone toward our long-term ‘structural’ valuation estimate of $26,000-$35,000,” he stated in the report. Beyond this range, Kendrick anticipates a continued ascent in the Ethereum price.
Kendrick’s bullish predictions are not confined to Ethereum alone. He previously forecasted that the price of Bitcoin would reach $120,000, with optimism extending to the entire crypto market. Nevertheless, it is clear that Kendrick holds a particularly bullish sentiment for Ethereum.
It’s worth noting that not all analysts share this bullish perspective for Ethereum. One crypto analyst has offered a contrasting viewpoint, suggesting that Ethereum’s price could potentially decline to as low as $900.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
