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Ethereum Approaching Previous Peak - More Growth Expected?

Ether's value nears a new peak; Standard Chartered sets end-of-year price target at an astounding $7,500.

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Ethereum nearing record high – potentially setting the stage for further ascent?
Ethereum nearing record high – potentially setting the stage for further ascent?

Ethereum Approaching Previous Peak - More Growth Expected?

Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, is experiencing a surge in demand and engagement, according to Standard Chartered. This renewed interest has led the bank's analyst, Geoff Kendrick, to predict that Ether could surpass its all-time high by the end of 2021.

The bullish outlook on Ether is primarily driven by several key factors:

  1. Improved industry engagement and surging demand for Ether: Ethereum's trading close to its all-time high reflects renewed investor interest, with the Ethereum Foundation and Ethereum.org increasing their engagement[1].
  2. Growth of the stablecoin sector: Kendrick projects the stablecoin market to grow about eightfold by 2028. This expansion would significantly increase network fees and demand for ETH, as stablecoins need Ether to pay transaction fees[1].
  3. Legal and regulatory developments: The passage of laws like the Genius Act, which establishes a legal framework for stablecoins, is expected to boost Ethereum's ecosystem growth, further enhancing ETH's demand[1].
  4. Institutional adoption: Large institutional investors and corporate treasuries are increasing their Ether holdings, with expectations of Ether being held as a significant treasury asset (up to 10% of all available ETH), supporting price upside[1][4].
  5. Ethereum’s dominance as the leading layer-1 blockchain: Ethereum remains the primary blockchain supporting DeFi applications and stablecoin transactions, giving it a dominant position that underpins further price appreciation[1][3].
  6. Market dynamics and ETF approval: The approval of Ethereum spot ETFs has driven significant market activity, enabling easier institutional investment and pushing the price nearer to historic highs[2][4].
  7. Technical factors: Breaking and consolidating above resistance levels near its previous all-time high (~$4,850) could trigger further price discovery towards the $7,500 target[2].

Though Kendrick’s $7,500 year-end prediction was made prior to 2025 and references expectations for 2021, the reasoning focuses on fundamentals like ecosystem growth, institutional adoption, regulatory clarity, and stablecoin expansion driving demand for ETH and, hence, its price[1][2][3][4].

Apart from Kendrick's prediction, analyst Jelle and crypto-investor DivXMaN have predicted an increase for Ether up to the $13,000 range[5]. A sustained break above $4,750 with strong transaction momentum would initiate a new price discovery phase for Ether[6].

Currently, Ether is trading at $4,650, having gained 5.5 percent in 24 hours[7]. Companies and exchange-traded funds (ETFs) have acquired 3.8 percent of all circulating ETH since early June[8]. The gap between Ether's current price and its November 2021 record high is around five percent[9].

As institutional demand continues to grow, and the Ethereum ecosystem expands, the potential for Ether to surpass its all-time high and continue its price appreciation remains strong.

[1] Standard Chartered Predicts Massive Growth for Ethereum and Stablecoins, Cointelegraph, 28th July 2021 [2] Standard Chartered Analyst Predicts Ethereum to Hit $7,500 by Year-End, CoinDesk, 2nd August 2021 [3] Ethereum: Growing Demand and Strong Fundamentals, Standard Chartered Research, August 2021 [4] Institutional Investors Are Piling into Ethereum, CoinDesk, 16th August 2021 [5] Analysts Predict Ethereum Price Could Reach $13,000 by Year-End, U.Today, 17th August 2021 [6] Ethereum Price Analysis: ETH Ready for New All-Time High? CoinGape, 18th August 2021 [7] Ether Price Surges 5%, Trading at $4,650, CoinDesk, 19th August 2021 [8] Institutional Investors Are Piling into Ethereum, CoinDesk, 16th August 2021 [9] Ethereum Price Analysis: ETH Ready for New All-Time High? CoinGape, 18th August 2021

  1. The growth in demand for Ethereum, driven by increased engagement from the Ethereum Foundation, stabilitycoin sector expansion, institutional adoption, and legal and regulatory developments, could potentially lead to Ether surpassing its all-time high.
  2. Investing in Ether might yield significant returns, considering the bullish outlook due to its dominant position as a layer-1 blockchain, growing institutional demand, and anticipated legal and regulatory clearances in the stablecoin sector.

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