Ethereum (ETH) fell below the critical threshold of $2,000 during the week, creating a mixed picture for the price. While the decline has led to increased buying interest for ETH, this is being interpreted in the market as a signal of further decline.
As uncertainty continues to mount for Ethereum, the largest altcoin, banking giant Standard Chartered has shared its latest analysis of ETH.
Accordingly, Standard Chartered drew parallels between Ethereum and Amazon during the dot-com bubble burst, arguing that the weakness in the ETH price does not reflect Ethereum’s strong fundamental metrics.
Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, noted that Amazon stock has increased in value 1,000 times since its 2001 lows, adding, “It’s only a matter of time before ETH catches up with its fundamental metrics.”
Despite the current weakness in Ethereum, the bank stated that it has optimistic views regarding ETH’s long-term prospects.
Geoff Kendrick stated that “the discrepancy between Ethereum’s strong fundamentals and weak price trends is temporary,” painting a positive picture for the price despite its recent declines.
Kendrick set price targets for Ethereum, aiming for $4,000 by the end of 2026 and $40,000 by 2030, and predicted that the ETH/BTC exchange rate would rise to 0.08 by the end of the decade.
The bank highlighted Ethereum’s leading role in the stablecoin and real-world asset tokenization sectors, predicting that the Ethereum price would eventually recover in line with its fundamental dynamics.
At this point, the bank notes that key metrics like Ethereum’s transaction volume and total value locked (TVL) measured in ETH are hovering near all-time highs, arguing that these strong metrics should ultimately drive prices higher as well.
While Standard Chartered expects a significant long-term price increase for Ethereum, analytics firm 10X Research stated that ETH’s low price is not a buy signal.
According to 10X Research’s analysis, while ETH is currently trading below its value, its low price doesn’t necessarily represent a buying opportunity. The firm noted a widening of bearish bets in the Ethereum options market, with approximately five times more entries than usual into put options at strike prices of $1,800 and $1,900.
10X Research noted that due to the deterioration of fundamental indicators, ETH has shown a bearish outlook since last October when it traded at $3,800, concluding that the low price alone does not make it an attractive investment.
*This is not investment advice.
