According to Standard Chartered, the macro forecast for Ethereum is optimistic. According to the firm’s analysts, Ethereum may reach $35,000 and overtake Bitcoin in market capitalization.
The recent London hardfork on the blockchain has drawn considerable attention to ETH. Despite the audacious prognosis, Ethereum has experienced a severe market drop today.
Many analysts believe a colossal supply shock is occurring, with 224,700 ETH burnt so far and another 7,500,000 tokens trapped in ETH 2.0 deposit contracts.
According to the analysis by the British banking giant, Ethereum may be viewed as a “financial market” since it allows users to lend and receive interest on investments, among other things.
According to the research, such a massive utility may allow Ethereum to catch up to Bitcoin’s market valuation. Despite the optimistic view, Ethereum does not appear to be as bullish in the immediate term.
ETH fell 15% to $3,350 earlier yesterday as the market was roiled by volatility. Bitcoin fell by more than 10%, while several lower-cap assets fell by 20% or more.
Only a daily candlestick close above the current high of $4,030 can render the bearish thesis incorrect. Under such unusual conditions, Ethereum would indicate a resumption of the bull run towards the 127.2 percent Fibonacci retracement level of $5,115.
Standard Chartered business has set a price goal of $26,000 to $35,000 for ETH once BTC reaches $175,000, indicating a 1,000% rise from current levels.
Depending on the deflationary impact of the EIP-1559 upgrade, a $35,000 ETH would give Ethereum a market valuation of over $4 trillion.