Simply put
- Standard Chartered has raised its Ethereum forecast significantly, now predicting values of $7,500 by 2025, $12,000 in 2026, $18,000 in 2027, and $25,000 in both 2028 and 2029. This contrasts sharply with their earlier estimate of just $4,000 for 2025 from March.
- The bank highlights key factors driving this growth, notably institutional purchases and developments like regulatory changes regarding stablecoins.
- As of now, Ethereum is trading around $4,684, just below its all-time high, and analysts believe it could reach $6,000 soon after breaking past $3,350.
Standard Chartered has made a substantial revision to its Ethereum price projection, aiming for $25,000 by 2028, a notable shift from earlier predictions which suggested a decline for the cryptocurrency.
The UK-based bank’s updated outlook now includes projections of $7,500 by the end of 2025, $18,000 by 2027, and the $25,000 target for 2028 and 2029, up from a previous forecast of $4,000 for 2025.
Geoff Kendrick, who leads digital asset research at the bank, mentions that the market environment for Ethereum has seen significant improvement over the past few months.
He pointed out that institutional buying has been happening at nearly double the rate compared to Bitcoin during peak periods.
Kendrick attributes part of the optimistic revision to an upcoming network upgrade and factors such as the anticipated environment for aU.S. ETF that would acquire a portion of the circulating Ethereum since last June, along with the US Genius Act aiming to clarify regulations for stablecoins.
Standard Chartered has termed these changes as crucial for boosting liquidity, enhancing DeFi growth, and subsequently increasing the demand for Ethereum, given that stablecoins account for a large share of blockchain fees, predominantly issued on the Ethereum network.
As for current market conditions, Ethereum’s value reached $4,713.37, realizing a gain of about 6% over the day and 30% over the week. It’s nearing the record high of $4,878 from November 2021.
Interestingly, the likelihood of Ethereum surpassing $5,000 has risen by 39% in just the past day, with users in forecast markets estimating an 87.5% chance of hitting that threshold.
Ilya Otichenko, a lead analyst at cex.io, mentioned that while the forecast is gaining traction, it’s worth noting the bank had made bold predictions before, including forecasts of $8,000 in 2024 and $14,000 for 2025.
Previously, Standard Chartered made a significant cut to its 2025 Ethereum target, reducing it from $10,000 to $4,000 due to concerns about competition affecting mainnet fees.
Otichenko concluded that the revised estimates seem to reflect improved market sentiment more than specific price targets, although he acknowledged that institutional buying and potential ETF interest could act as key factors in driving Ethereum’s price higher this year.
Arthur Azizov, founder of B2 Ventures, shared that there’s potential for Ethereum to reach $6,000 this year and possibly next year too, but he cautioned that maintaining support above $3,350 is critical for sustained upward momentum.
Current market liquidation data suggests that the ongoing rally is gaining strength as critical resistance levels are approached.
