Standard Chartered Sees Ethereum At $40,000 By 2030, Cuts 2026 Target

Overview

Standard Chartered has revised its long-term forecast for Ethereum, projecting a price of $40,000 by the end of 2030. However, the bank has significantly lowered its medium-term outlook for Ethereum, particularly for 2026, reflecting ongoing market dynamics influenced by Bitcoin’s performance.

Standard Chartered’s New Ethereum Forecast

In a recent research note, Standard Chartered’s digital assets analyst shared insights on Ethereum’s evolving market position. The bank has set a new end-2026 target for Ethereum at $7,500, a substantial reduction from its previous estimate of $12,000. Despite this downward revision, the bank anticipates that Ethereum will regain momentum, expecting it to reach $15,000 in 2027, down from an earlier projection of $18,000, and $22,000 in 2028, lowered from $25,000. The forecast then suggests a rise to $30,000 in 2029, adjusted upward from $25,000, before reaching the long-term target of $40,000 by the end of 2030.

Geoff Kendrick, the bank’s digital assets analyst, emphasized that 2026 could serve as a significant inflection point for Ethereum, similar to the pivotal year of 2021. He noted that Ethereum’s prospects are improving, despite the downward pressure exerted by Bitcoin’s performance on the overall cryptocurrency market. Kendrick pointed out that weaker Bitcoin prices have negatively impacted the outlook for digital assets priced in dollars, necessitating lower absolute price targets through 2028, even as Ethereum’s relative fundamentals show signs of strength.

Factors Influencing Ethereum’s Outlook

Kendrick identified several factors that could bolster Ethereum’s relative performance. He highlighted continued accumulation by Bitmine Immersion Technologies, the largest Ethereum-focused digital asset treasury company, as a positive indicator. This accumulation occurs alongside a slowdown in exchange-traded fund (ETF) inflows and a cooling of broader corporate treasury buying.

Furthermore, Kendrick pointed to Ethereum’s integral role in stablecoins, tokenized real-world assets, and decentralized finance (DeFi) as key structural demand drivers. He also noted plans to enhance Ethereum’s layer-1 throughput by approximately tenfold over the next two to three years, suggesting that increased throughput could lead to a higher market capitalization for Ethereum.

Regulatory developments were also flagged as potential tailwinds for Ethereum. Kendrick mentioned the US CLARITY Act, which could support the sector and particularly benefit Ethereum if it facilitates a new phase of DeFi activity. The US Senate is scheduled to review this bill, with possible passage anticipated early in the year.

From author

The adjustments made by Standard Chartered to its Ethereum forecast reflect a nuanced understanding of the cryptocurrency landscape, particularly the interplay between Ethereum and Bitcoin. While the immediate outlook appears cautious, the long-term projections highlight a belief in Ethereum’s potential for recovery and growth. This duality in assessment underscores the complexity of the crypto market, where relative performance can diverge significantly from absolute price targets.

Impact on the crypto market

• Standard Chartered’s revised forecasts may influence investor sentiment towards Ethereum and the broader cryptocurrency market.
• The significant reduction in medium-term price targets could lead to increased caution among traders and investors.
• The emphasis on Ethereum’s role in stablecoins and DeFi may attract institutional interest in these areas.
• Regulatory developments, such as the US CLARITY Act, could create a more favorable environment for Ethereum and potentially enhance its market position.
• The anticipated improvements in Ethereum’s throughput may drive future investment and interest in the network’s capabilities.