Standard Chartered predicts Ethereum will outperform, reaching $7500 by the end of 2026
On January 12, Standard Chartered Bank conveyed a positive outlook regarding the future of Ethereum. Geoffrey Kendrick, the bank’s global head of digital asset research, expressed confidence in Ethereum’s potential, despite revising its short-term price forecasts in light of the current weaknesses in the cryptocurrency market. Kendrick highlighted his belief that Ethereum is poised to outperform other cryptocurrencies by 2026, much like it did in 2021.
In a note accompanying the bank’s latest digital asset report, Kendrick emphasized that the increasing adoption of blockchain technology and on-chain products will play a pivotal role in propelling Ethereum to outperform the broader market significantly. The report also pointed out that while Bitcoin continues to dominate the cryptocurrency space, its underperformance has dampened the outlook for digital assets relative to the U.S. dollar. Nonetheless, Kendrick underscored that Ethereum’s momentum is gaining traction when compared to Bitcoin.
Standard Chartered Bank anticipates that the ETH/BTC exchange rate will gradually rise to around 0.08, reflecting Ethereum’s structural advantages over other cryptocurrencies. These advantages include its stronghold in stablecoins, real-world assets, and decentralized finance (DeFi), as well as its ongoing efforts to enhance scalability. The bank emphasized the importance of increasing Ethereum’s Layer 1 throughput, such as the implementation of the Fujisaki upgrade in December 2021, as historical data suggests that higher throughput often correlates with a higher market capitalization. Furthermore, a more favorable regulatory climate, particularly the expected approval of the U.S. Clarity Act in the first quarter, could further bolster Ethereum’s prospects. Standard Chartered Bank believes that if this bill is passed, coupled with the resilience of U.S. stock markets, it could drive Bitcoin to reach new all-time highs in the first half of the year, thereby providing long-term support for Ethereum.
Standard Chartered Bank’s forecasts for Ethereum and Bitcoin diverge as it maintains a more positive outlook on Ethereum over Bitcoin. Despite lowering its price targets for Ethereum in the short term, the bank remains optimistic about Ethereum’s future. It now projects Ethereum to reach $7,500 by the end of 2026, down from its previous estimate of $12,000. The bank has also adjusted its targets for 2027 and 2028 to $15,000 and $22,000, respectively, both lower than previous projections. However, the bank has raised its long-term forecasts, with an end-2029 target of $30,000 and a new target of $40,000 by the end of 2030.
