Institutional investors are now betting on the possibility that Ethereum will soar due to the financial market growth. Standard Chartered analysts trust that Ethereum’s growth potential can overtake Bitcoin, the first cryptocurrency by market capitalization. However, the tech data shows that before this future rise, ETH will suffer a setback.
Standard Chartered takes an optimistic stance on Ethereum. ETH now has more exposure thanks to the London Hard Fork, a recent innovation on the blockchain. The network has burned 224,700 tokens to date, with 7,500,000 tied in ETH 2.0 deposit contracts. Some analysts are now predicting a big surprise for the future.
Among several financial institutions that have massive expectations for Ethereum’s development, Standard Chartered is the youngest. A recent report shows that the British banking giant sees Ethereum as a financial market that provides various services for users.
This arises from the fact that the network is a platform for lending, interest on investments and other things. Additionally, the report explains the possibility that Ethereum could catch up with Bitcoin’s market capitalization through such a benefit.
Additionally, Standard Chartered cites a price range of $ 26,000 to $ 35,000 as a potential target for Ethereum – if BTC hits $ 175,000.
According to the multinational financial services company, this target represents an increase of 1,000% over the current price level. The company expects Ethereum to reach a market capitalization of around $ 4 trillion at an ETH price of $ 35,000. However, this will depend on the deflation impact of the EIP-1559 update.
Ethereum could only crash before the uptrend
Regardless of its great potential, Ethereum doesn’t look bullish on a short-term basis.
The Tom Denmark (TD) Sequential indicator shows a sell-signal on the daily chart of Ethereum. The bearish formation was formed in the shape of a green nine-candle.
If validated by a daily close below the $ 3,800 mark, ETH is likely to swing towards the 61.8% or 50% fibonacci retracement level. These major barriers to demand are $ 3,350 and $ 3,050, respectively.
Standard Chartered predicts that ETH will hit $ 35,000
However, Ethereum fell to $ 3,350, a 15% drop due to the volatility of the crypto market. Similarly, Bitcoin fell over 10% while other digital assets plummeted by as much as 20% or more.
It only takes a daily candle to close above the recent high of $ 4,030 to break the bearish thesis. If these conditions are met, Ethereum will kick off an upward move towards the 127.2% fibonacci retracement level at $ 5,115.
Proof of text: Bitcoinist
Last updated on September 10, 2021
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