Standard Chartered Bank Projects Fivefold Increase in Ethereum Value by 2026
According to Geoff Kendrick, the Head of Crypto Research and EM FX West at Standard Chartered Bank, Ethereum could experience a significant increase in value, potentially reaching $8,000 by the end of 2026. Kendrick believes that Ethereum’s expanding roles in gaming and tokenization will create substantial new demand, in addition to its current utilization for non-fungible tokens (NFTs) and decentralized finance (DeFi).
Kendrick further states that these emerging applications will serve as real-world examples, demonstrating how various sectors can transition to the Ethereum blockchain to leverage its advantages over existing systems. He expects significant progress in these sectors between 2025 and 2026. In the near term, Kendrick predicts a positive market-wide impact from Bitcoin’s upcoming halving event in April 2024, which will also benefit Ethereum. He sees Ethereum’s value reaching $4,000 by the end of 2024.
Moreover, Kendrick suggests that the $8,000 valuation is just the beginning for Ethereum. He believes it is an initial stage leading up to the bank’s long-term valuation estimate for Ethereum, ranging between $26,000 and $35,000.
Crypto Analyst Benjamin Cowen Expresses Short-Term Pessimism on Ethereum
In contrast to Kendrick’s optimistic projection, crypto analyst Benjamin Cowen has expressed a pessimistic short-term outlook on Ethereum. Cowen expects Ethereum’s price to decrease significantly by the end of this year.
Cowen argues that Ethereum needs to revert to a lower value before it can sustain any long-term upward movement. He downplays the significance of Ethereum’s recent price doubling, comparing it to gains easily attainable in the conventional stock market. According to Cowen’s analysis from almost a year ago, Ethereum typically needs to touch its lower regression band to experience notable price upticks, which lies in the $600 to $800 range based on his logarithmic regression model.
Cowen predicts that Ethereum’s price is likely to fall below $1,200 within the next few months, and he doesn’t rule out the possibility of an even steeper decline. He believes that despite Ethereum’s efforts to maintain its price within shorter time spans, it’s only a matter of time before it breaks these levels and reverts to lower valuation ranges.
Hot Take: Contrasting Views on Ethereum’s Future
While Standard Chartered Bank projects a significant increase in Ethereum’s value over the next few years, reaching up to $8,000 by 2026, crypto analyst Benjamin Cowen holds a pessimistic short-term outlook for Ethereum. Cowen expects a substantial decrease in Ethereum’s price by the end of this year, arguing that it needs to revert to a lower value before experiencing long-term upward movement. These contrasting views highlight the uncertainty and volatility in the cryptocurrency market. Investors should consider multiple perspectives and conduct thorough research before making any investment decisions.
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