Ethereum’s macro outlook is bullish, according to banking giant Standard Chartered.
Analysts at the firm say Ethereum could hit $35,000 and surpass Bitcoin in market cap terms.
Despite the bold prediction, Ethereum has suffered a brutal dip in the market today.
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Standard Chartered analysts believe that Ethereum has more room to go up and could even surpass Bitcoin as the number one cryptocurrency by market cap. Still, the technicals show that ETH is primed to retrace before advancing further.
Standard Chartered Says Ethereum Is Undervalued
Standard Chartered has shared a bullish outlook for Ethereum.
The blockchain’s recent London hardfork has brought a lot of attention to ETH. With 224,700 ETH burned to date and another 7,500,000 tokens locked in ETH 2.0 deposit contracts, many analysts believe a massive supply shock is underway.
Standard Chartered is one of the latest financial institutions to jump the bullish case for Ethereum. In a recent report, the British banking giant said that Ethereum could be thought of as a “financial market” as it enables users to lend and earn interest on investments, among many other services. Such an immense utility could allow Ethereum to catch up with Bitcoin’s market capitalization, the report said.
The multinational banking and financial services company put a $26,000 to $35,000 price target on ETH once BTC crosses $175,000, representing a 1,000% increase from the current levels. A $35,000 ETH would give Ethereum a market cap of roughly $4 trillion, depending on the deflationary impact of its EIP-1559 update.
A Pullback Before Higher Highs
Despite the optimistic outlook, Ethereum does not look as bullish from a short-term perspective.
The Tom DeMark (TD) Sequential indicator recently presented a sell signal on Ethereum’s daily chart. The bearish formation developed as a green nine candlestick, indicative of a one to four daily candlesticks correction before the uptrend resumes.
If validated by a daily close below the $3,800 support level, ETH would likely dive towards the 61.8% or 50% Fibonacci retracement level. These critical demand barriers sit at $3,350 and $3,050 respectively.
ETH plummeted 15% to $3,350 earlier today as the market was shaken by volatility. Bitcoin also dipped over 10%, while many other lower cap assets shaved off 20% or more.
Only a daily candlestick close above the recent high of $4,030 can invalidate the bearish thesis. Under such unique circumstances, Ethereum would be signaling the resumption of the bull run towards the 127.2% Fibonacci retracement level at $5,115.
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