Standard Chartered predicts Ethereum to hit $8,000 in three years! K33 Research: Trading volume remains sluggish

The Block reported that Standard Chartered Bank once again predicted that the price of Ethereum will reach $8,000 by 2026, with a long-term price target of at least $26,000, citing potential positives such as the EIP-4844 upgrade and regulatory developments in the United States. However, financial giant JPMorgan and research firm K33 Research hold a more cautious and conservative view.

Standard Chartered Bank: Long-term Target Price for Ether to Reach $26,000

Geoffrey Kendrick, Head of Foreign Exchange and Cryptocurrency Research at Standard Chartered Bank, explained in a report on Wednesday that the current second-largest cryptocurrency, Ether, is expected to reach $8,000 by 2026:

We believe Ethereum's established dominance in smart contract platforms, as well as its innovative applications in gaming and asset tokenization, will propel its token to unprecedented new heights.

As a starting point for its previous long-term structural valuation of Ether, the analyst boldly estimates a long-term price target of $26,000 to $35,000.

Regarding his speculation, Kendrick pointed out several reasons and potential catalysts.

Ethereum EIP-4844 Upgrade

Kendrick believes that Ethereum's upcoming "Cancun upgrade proto-danksharding," expected to take place later this year or early next year, will reduce network transaction costs and promote the flourishing of its L2 network.

This upgrade will help Ethereum maintain its leading position in the smart contract arena, improve its future price-to-earnings ratio, and become one of the main factors driving the price of its token up.

Bitcoin Halving Event

He also takes into account the upcoming Bitcoin halving mechanism, claiming that the event, expected to occur around April 2024, will inject a shot in the arm for all crypto assets, with Ethereum being the first to benefit.

Regulation of U.S. Cryptocurrency ETFs

In addition, Kendrick also sees the continuous launch of U.S. cryptocurrency regulations and related ETFs positively, expecting the U.S. to approve multiple crypto ETFs next year and implement relevant regulatory measures, which will have a positive impact on Ether and Bitcoin prices.

Previously, Standard Chartered has made several predictions about cryptocurrency prices, including claiming that Bitcoin will reach $50,000 by the end of this year and $120,000 next year, but the accuracy of these predictions remains to be verified.

However, JPMorgan, which holds a different view from Standard Chartered Bank, believes that the EIP-4844 upgrade itself may not necessarily effectively boost Ethereum's network activity, pointing out that the current bearish forces in the cryptocurrency market remain a resistance.

K33 Research: Traders Prefer BTC Over ETH

However, looking at the current situation, a report from K33 Research shows that, due to the higher premium of Bitcoin futures over Ethereum and the potential benefits of approved spot Bitcoin ETFs fermenting, current traders prefer Bitcoin over Ether.

The Block quoted Bloomberg ETF analyst Eric Balchunas' optimistic view on spot Bitcoin ETFs last week, stating that the U.S. Securities and Exchange Commission (SEC) is actively cooperating with relevant issuers on custody and legal aspects.

I expect a 75% likelihood of spot Bitcoin ETF approval by the end of this year and a 90% likelihood of approval by March 2024.

K33 analysts stated that the launch of spot Bitcoin ETFs will trigger a strong market reaction, regardless of whether they are approved.

At the same time, due to the current decrease in Bitcoin volatility and the continued rise in its market dominance, Ether and most competing coins have performed poorly in their spot markets, with low trading volumes.