Standard Chartered, an international bank, has made a bold prediction regarding the price of Ethereum, the world’s second-largest cryptocurrency. On October 11, analysts from the bank suggested that Ethereum’s prices could potentially reach $8,000 by the end of 2026. This optimistic forecast was presented by Geoff Kendrick, the Head of the bank’s digital assets research.
Kendrick pointed to Ethereum’s increasing utility in smart contracts, gaming applications, and the tokenization of traditional assets as key drivers for the projected surge in its price. Notably, he didn’t limit the bank’s foresight to the short term, indicating substantial gains in the long run. According to Kendrick, the $8,000 level is seen as a precursor to a long-term ‘structural’ valuation estimate ranging between $26,000 and $35,000.
However, this long-term projection extends far into the future, reaching as far ahead as 2040. Kendrick’s valuation assumes the emergence of future use cases and revenue streams, particularly emphasizing the real-world applications of gaming and tokenization as catalysts for Ethereum’s development.
To contextualize this prediction, analysts often turn to historical market cycles. Since its launch in 2015, Ethereum has experienced two major market cycles. In January 2017, Ethereum was trading at approximately $10, and by January 2018, it surged to an impressive $1,450—an astonishing gain of over 14,000%. Following a bear market low of $85 in December 2018, Ethereum reached an all-time high of $4,878 in November 2021, marking a gain of over 5,600%. The most recent cycle low occurred in June 2022, with Ethereum trading around $1,000. To meet Standard Chartered’s predicted price of $8,000 in the next bull market, Ethereum would only need to gain 700%.
This projection seems plausible when considering Ethereum’s historical performance. Furthermore, several fundamental factors contribute to the long-term bullish outlook of Ethereum, including deflationary issuance, staking mechanisms, scaling upgrades, and increasing institutional adoption.
However, despite these positive factors, the current market action of Ethereum presents a more subdued picture. At the time of the prediction, Ethereum is trading at $1,561, showing a 68% decrease from its all-time high nearly two years ago. The cryptocurrency has experienced a 5% decline over the past week and is currently hovering around support levels, marking its lowest price since a significant market downturn in mid-March. Given these present market conditions, the ambitious prediction by Standard Chartered appears to be facing challenges in the immediate term.
