Ethereum Could Reach $35,000, according to Standard Chartered

0
5652

As Ethereum’s utility as a “financial market” develops, institutional investors begin to put bets on the network.

Ethereum, according to Standard Chartered analysts, has more potential to rise and may overtake Bitcoin as the most valuable cryptocurrency by market capitalization. Despite this, the technicals indicate that ETH is due for a retracement before continuing to rise.

Ethereum, according to Standard Chartered, is undervalued

Standard Chartered has given Ethereum a positive outlook.

The recent London hard fork on the blockchain has drawn a lot of attention to ETH. Many analysts believe a huge supply shock is occurring, with 224,700 ETH burnt too far and another 7,500,000 tokens trapped in ETH 2.0 deposit contracts.

Standard Chartered is the latest financial institution to join the Ethereum bullish argument. According to a new analysis by the British banking giant, Ethereum may be considered a “financial market” since it allows users to lend and receive interest on investments, among other things. Moreover, according to the research, Ethereum’s tremendous usefulness might allow it to catch up to Bitcoin’s market valuation.

Once BTC hits $175,000, the global banking and financial services business has set a price goal of $26,000 to $35,000 for ETH, indicating a 1,000 percent rise from current levels. Depending on the deflationary impact of Ethereum’s EIP-1559 upgrade, a $35,000 ETH might give it a market valuation of over $4 trillion.

A Retracement Before Higher Highs

Despite the upbeat prognosis, Ethereum does not appear to be as positive in the immediate term.

On Ethereum’s daily chart, the Tom DeMark (TD) Sequential indicator just gave a sell signal. A green nine candlestick formed the bearish pattern, indicating a one to four daily candlestick correction before the uptrend restarts.

If a daily closure below $3,800 is confirmed, ETH would likely fall to the 61.8 percent or 50 percent Fibonacci retracement level. The price points for these significant demand barriers are $3,350 and $3,050, respectively.

As the market was rocked by volatility earlier today, ETH fell 15% to $3,350. Bitcoin lost more than 10% of its value, while many other lower-cap assets lost 20% or more.

The bearish thesis can only be disproved if a daily candlestick closes above the recent high of $4,030. Ethereum would indicate the continuation of the bull run towards the 127.2 percent Fibonacci retracement line at $5,115 under such unusual circumstances.

LEAVE A REPLY

Please enter your comment!
Please enter your name here