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Institutional investors are now betting on the possibility of a surge in Ethereum due to the growth of its financial markets. Standard Chartered analysts believe Ethereum’s growth potential may overtake Bitcoin, the leading cryptocurrency by market cap. However, the techniques reveal that prior to any future advancement, ETH is required to trace.
Standard Chartered takes a bullish position on Ethereum. ETH now has more attention, thanks to the London Fork, a recent blockchain innovation. The network records that to date 224,700 tokens have been burned with 7,500,000 stuck in ETH 2.0 deposit contracts. Some analysts are now predicting a huge surprise in the future.
Among several financial institutions that are massively anticipating Ethereum’s performance, Standard Chartered is the latest. According to a recent report, the British banking giant sees Ethereum as a financial market filled with different services for users.
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This is because the Network is a platform for loans, interest on investments and the like. Additionally, the report explained the possibility of Ethereum matching Bitcoin’s market capitalization through such a utility.
Additionally, Standard Chartered gives a price range of $ 26,000 to $ 35,000 as a potential target for Ethereum if BTC hits $ 175,000.
The multinational financial services company says the target represents a 1,000% increase over current price levels. He predicts that Ethereum will bring together a market cap of around $ 4 trillion with ETH at $ 35,000. However, that will depend on the impact of the deflation of its EIP-1559 update.
Ethereum will decline before an uptrend
Regardless of its great potentials, Ethereum does not have a bullish appearance in the short term.
From the Tom DeMark (TD) sequential indicator, the Ethereum daily chart highlights a sell signal. The bearish formation was built like a new green candlestick. When a pointer of 1 to 4 daily candlesticks the correction that precedes the resumption of the uptrend.
Validating with a daily close below the $ 3,800 benchmark level, ETH is likely to switch to the 61.8% or 50% Fibonacci retracement level. Such significant demand barriers 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 fell to $ 3,350 which shows a 15% reduction due to the volatility of the crypto market. Likewise, Bitcoin has fallen more than 10% even as other digital assets have fallen as much as 20% or more.
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It may only take a daily close of the candlestick above $ 4,030 from the recent high level to disrupt the bearish thesis. Upon meeting these conditions, Ethereum will signal the start of a bull run towards the 127.2% Fibonacci retracement mark at $ 5,115.
Featured image from Pixabay, chart from TradingView.com
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