- Standard Chartered crypto analysts value Ethereum’s ETH anywhere between $26,000 – 35,000.
- Bitcoin would then have to trade at $175,000.
- ETH/BTC would top 0.161 with Ethereum achieving Bitcoin’s current market cap.
KOLKATA (CoinChapter.com) – Crypto analysts at Standard Chartered have predicted Ether to be worth $26,000-35,000 soon. But for ETH to trade within the said price range, Bitcoin would have to be worth $175,000.
“For this ETH valuation range to be attainable, we assume that BTC would also need to trade towards towards the upper end of its valuation range (which we estimate at $175,000). If the dominant crypto asset (BTC) trades well, we think this will benefit investor perceptions of other crypto assets.”
read an excerpt from the Standard chartered’s Ethereum investor guide
Related: Ethereum analysts weigh behind $13K ETH projection in Q4 as crypto market recovers
Two approaches formed the basis for the above ETH valuation estimation.
Two Analogies To Arrive At The Monstrous ETH Valuations
Comparing Value Of Global Banks Against Global Credit Card Companies
Standard Chartered analysts compared the value of global banks to the aggregated value of global credit-card companies to deduce the second-largest cryptocurrency’s value relative to Bitcoin. The analogy yielded a potential price target of $35,000.
“In simple terms, the market cap of banks globally is 4x the market cap of credit card companies globally. Using this analogy, XET has a potential market cap of $4 trillion. Total ETH currently outstanding is 117 million, equating a price of USD 35,000 for XET. This is 10x the current price.”
Crypto investor, technical analyst, and Cryptoacademy founder Justin Benett reiterated the bank’s ETH price prediction himself.
“Don’t get me wrong, I’ll take $10,000 all day long. But this is one of the cleanest channels I’ve ever seen. Hard not to pay attention.”
hea added in a subsequent tweet
Related: Ethereum bull pennant predicts massive rally ahead as ETH reclaims $3K
Portfolio Optimisation
According to crypto analysts at the retail banking giant, an allocation of 2% of global portfolios to the crypto asset class is optimal.
Expanding more on portfolio allocation, they estimated the total worth of global financial assets at almost $400 trillion. A 2% allocation from the same to crypto would make the entire cryptocurrency market worth $9 trillion. Thus, Ethereum, according to analysts, has a good chance to grow its market valuation over time.
Possibly to a $3 trillion market cap. ETH would then trade at $26,000. Also, this would mean that the ETH/BTC pair would have to trade at 0.161.
“We expect the cross rate between the Ethereum and Bitcoin currency units (XET-XBT) to roughly double from current levels to 0.161, bringing ETH’s total market cap in line with BTC’s. Where XET-USD trades will be partly determined by where XBT-USD trades.”
The resident crypto analysts at Standard Chartered also listed several structural considerations to arrive at the $26,000-35,000 near-future price range for Ether. In addition, the majority of them talk about how ETH 2.0 will redefine the entire Ethereum ecosystem.
The shift from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) consensus mechanism will make the public blockchain sustainable, scalable, and secure.
ETH/USD Technical Setup
ON WEDNESDAY, the ETH/USD pair rallied 8.5% intraday to log a sessional high of $3,641. Ethereum’s native cryptocurrency has been on a bullish streak since October, rallying almost 20%. The pair reversed all losses on the back of significant buying pressure and Bitcoin’s rally above $55,000.
Related: Bitcoin up 6,000,000,000% since launch
Although profit-takers disrupted the momentum, the trend remains bullish. All the more because the relative strength index (RSI) shares the ETH/USD pair’s upward momentum and has yet not passed into the overbought zone.
The next upside target for bulls falls at $3,800. However, that would come after a slight correction, probably towards $3,200-3,300. But once, ETH/USD closes above $3,800, the path to the previous all-time high near $4,400 would contain minimum resistance.
