Ethereum Poised for Significant Rally, Analyst Claims ETH is a Bargain
Despite recent market fluctuations, Ethereum (ETH) is still considered a steal, with a prominent analyst predicting a substantial price surge. Geoffrey Kendrick, Standard Chartered's Digital Assets Research Chief, asserts that growing institutional demand coupled with tightening exchange liquidity could propel Ethereum towards a year-end target of $7,500.
Institutional Inflows Fueling Ethereum's Ascent
Recent reports indicate a significant uptick in corporate digital asset treasury firms accumulating Ethereum. Since June, these firms have acquired approximately 2.5% of the total circulating ETH supply. Over the same period, spot Ethereum exchange-traded funds (ETFs) have accounted for nearly 5% of the supply, bringing the total institutional accumulation to roughly 7.5% of Ethereum's supply in a relatively short timeframe. Kendrick projects that these institutional holdings could eventually constitute up to 10% of all circulating Ether, a factor underpinning his bullish long-term outlook.
Exchange Outflows and Key Resistance Levels
Coinciding with this institutional accumulation, exchange-balance trackers reveal a considerable movement of ETH off trading platforms. In one instance, over 74,000 ETH—valued at approximately $340 million at recent prices—was withdrawn from exchanges in a single day, with Binance leading these outflows. Such sustained outflows are often interpreted as a reduction in near-term selling pressure, signaling a potential for price appreciation. Ethereum recently experienced a brief dip of about 5% before recovering, currently trading near $4,618. This represents a 4.6% gain over the last 24 hours and a 10% weekly rise, according to CoinMarketCap. Traders are closely monitoring the short-term resistance barrier around $4,600. A definitive breakthrough above this level could pave the way for a rally towards $4,700, with $4,800 serving as the next critical checkpoint before potentially revisiting its all-time high of $4,950, achieved on August 24. Kendrick's $7,500 year-end forecast implies a roughly 60% climb from current prices, necessitating continued strong inflows and favorable macroeconomic conditions.
