Institutional investors now bet on the possibility of Ethereum surging due to its financial market growth. Standard Chartered analysts trust Ethereum’s growth potential can overtake Bitcoin, the first cryptocurrency by market cap. However, technicals reveal that before future advancement, ETH is bound to retrace.
Standard Chartered takes a bullish stand on Ethereum. ETH now has more attention, thanks to the London fork, a recent innovation on the blockchain. The network records that up to date, 224,700 tokens burned with 7,500,000 locked in ETH 2.0 deposit contracts. Some analysts now predict a huge surprise in the future.
Among several financial institutions that have massive anticipation in the performance of Ethereum, Standard Chartered is the latest. From a recent report, the British banking giant sees Ethereum as a financial market filled with different services for users.
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This’s from the fact that the Network is a platform for lending, interest-earning on investments, and others. Furthermore, the report explained the possibility of Ethereum matching up to Bitcoin’s market cap through such utility.
Furthermore, Standard Chartered gives a price range of $26,000 to $35,000 as the potential target for Ethereum if BTC hits $175,000.
The multinational financial service firm explains that the target represents a 1000% increase from the present price levels. It envisages that Ethereum will gather a market cap of about $4 trillion with ETH at $35,000. However, this will depend on the impact of deflation of its EIP-1559 update.
Ethereum To Decline Before An Upward Trend
Irrespective of its great potentials, Ethereum has no bullish appearance on a short-term basis.
From the Tom DeMark (TD) Sequential indicator, Ethereum’s daily chart highlights a sell signal. The bearish formation was built as a green nine candlestick. When a pointer of 1 to 4 daily candlesticks correction that precedes the uptrend resumptions.
Validation through a daily close below the $3,800 benchmark level, ETH is likely to swing towards the 61.8% or 50% Fibonacci retracement level. Such important demand barriers levels at $3,350 and $3,050, respectively.
At the time of writing, ETH is trying to recover previous losses | Source: BTCUSD on TradingView.com
However, Ethereum dropped to $3,350 that shows a 15% reduction due to the volatility of the crypto market. Similarly, Bitcoin plummeted by over 10% even as other digital assets dipped by up to 20% or more.
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It can only take a daily candlestick close beyond $4,030 of the recent high level to disrupt the bearish thesis. By satisfying such conditions, Ethereum will indicate a kick-off of a bull race towards the 127.2% Fibonacci retracement mark at $5,115.
Featured image from Pixabay, chart from TradingView.com