- Standard Chartered revised its forecast as Ethereum price nears its all-time high this Wednesday.
- The bank now sees the asset reaching up to $7,500 before 2025 ends.
Standard Chartered yet again revised its year-end prediction for Ethereum (ETH). After lowering its outlook from $10,000 to $4,000 last March, the financial institution updated its projection to $7,500 before the year ends. This was a $3,500 leap since its forecast during the first quarter.
In a report it shared with Cointelegraph, Standard Chartered has cited the aggressive accumulation of treasury companies for the significant revision. According to the bank, treasury companies have been acquiring Ether at double the rate they did for Bitcoin (BTC) during the 2024 election cycle, as now-president Donald Trump promised to make the US the world’s “crypto capital” during the period. It noted that treasury companies and exchange-traded funds (ETFs) already owned 3.8% of ETH’s circulating supply since early June.
Reasons for the Revised Forecast on the Price of Ethereum
The financial giant claimed a lot of developments have happened since its March forecast. One of the things accelerating the Ethereum ecosystem were the industry engagements of the Ethereum Foundation and Etherialize.
Ethereum’s performance, scalability, and efficiency upgrades are also reinforcing optimism for its token and distributed ledger technology’s (DLT) adoption. Standard Chartered especially mentioned Ethereum founder Vitalik Buterin’s plans to improve the throughput of the chain by ten times to scale with the onchain settlement of high-value transactions while directing smaller transfers to layer-2 (L2) networks like Arbitrum (ARB) and Base (BASE) as a considerable progress for the network.
Additionally, the bank is bullish on the long-term effect of crypto-friendly regulations, such as the GENIUS ACT in July. It said the clarity offered by the new law will accelerate the adoption of stablecoins. Since these assets comprise 40% of all blockchain fees, with almost half of these issued via Ethereum, the heightened demand would eventually reflect in ETH’s price.
Interestingly, Standard Chartered predicted that ETH would surpass its all-time high of $4,891.70, which it achieved four years ago. It stated that it would happen by the third quarter of this year. As of writing, this may not be far from realization anymore as the token just went over $4,700 for the first time since it retracted from its historic peak.
A Pivot from a Bearish Take During the First Quarter
Standard Chartered’s latest analysis contrasts its March projection, which raised questions on Ether’s dominance and most of its value dripping to L2s. Furthermore, Geoff Kendrick, the company’s head of digital asset research, warned in the same report that Ethereum’s structural decline could cause the token to hit its bottom.
The latest development underscores the unpredictable nature of ETH and other crypto assets, considering their volatility and with other macro factors at play. With that, readers must not take these facts and analyses as a definitive forecast of where the token’s price is heading next.
Likewise, readers should not take these as financial advice or product endorsements from the author or Blockzeit.
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