In a recent report, Standard Chartered predicted that Ethereum’s (ETH) price would rise to $26,000-$35,000 as the altcoin’s market capitalization will eventually catch up to Bitcoin’s. Depending on the deflationary impact of Ethereum’s EIP-1559 update, a $35,000 ETH might give it a market cap of around $4 trillion.
The bank notes that the estimate is also contingent on bitcoin’s performance, as the largest cryptocurrency by market capitalization must reach $175,000 for ether to reach the previously specified range. To confirm the prediction, the present rates of BTC and ETH need to be increased by three and ten times, respectively.
According to a new assessment by the British banking giant, Ethereum may be considered a “financial market” because it allows users to lend and collect interest on investments, among other things. According to the analysis, Ethereum’s huge utility could allow it to catch up to Bitcoin’s market valuation.
“Although in the long term the profitability from investments in ETH may exceed the BTC indicator, the risks are also higher,” the bank’s representatives emphasized.”
ETH Price Crashes Hard!
Ethereum, the second-largest cryptocurrency by total market capitalization, lost nearly 11% of its value overnight after reclaiming the all-important US $4,000 psychological threshold just a few days ago.
Following the market’s current events during the last 24 hours. Ether is battling to reclaim its trading range of $3,600 to $3,900.
The Ether price may retrace below $3,000 if bearish pressure intensifies. The nearest substantial support in this sense would be around $2,800.
Meanwhile, on-chain data reveals a mixed picture of Ethereum. The number of active addresses dropped dramatically during the sell-off, according to Glassnode. At the same time, total fees on the Ethereum network have been increasing.