|

Ethereum Price Forecast: Standard Chartered sees ETH's pullback as good buying opportunity

Ethereum price today: $4,580

  • Ethereum and ETH-based DATs are still trading at cheap levels.
  • DATs and ETH ETFs have accumulated 4.9% of Ethereum's circulation since June.
  • ETH has to hold above a rising trendline to maintain a bullish structure.

Ethereum (ETH) is up 5% on Tuesday, following projections from a Standard Chartered analyst that its pullback after tagging a new all-time high presents a good buying opportunity.

ETH's pullback, a good "entry point" amid sustained demand from DATs and ETFs

Ethereum and ETH-focused digital asset treasury (DAT) companies are "cheap at today's levels," according to Geoffrey Kendrick, the global head of digital asset research at Standard Chartered.

In a Tuesday note, Kendrick stated that the recent pullback toward $4,500 is a "great entry point," reiterating that ETH could hit the $7,500 mark by year's end.

He highlighted how DATs have fueled ETH demand, acquiring 2.6% of its total circulation since June. When combined with a strong buying pressure from US spot ETH exchange-traded funds (ETFs), these entities have amassed 4.9% of ETH's circulating supply during the period. The strong demand aided ETH's push to a new all-time high of $4,955 on Sunday, Kendrick said.

"Although these inflows have been significant, the point is that they are just getting started," he added, restating his forecast that DATs could hold 10% of ETH's circulating supply, which is 121,009,455 ETH at the time of writing, per Ultrasound Money data. BitMine Immersion (BMNR) alone plans to acquire 5% of ETH's circulation.

Additionally, Kendrick shared how the net asset value multiples (mNAV) — a firm's market capitalization divided by the value of its crypto holdings — of ETH treasury companies BitMine and SharpLink Gaming have declined below that of their Bitcoin-based counterpart Strategy.

"Given that the ETH treasury companies are able to capture ETH's 3% staking yield, I see no reason for the NAV multiples to be below MSTR's multiple (which captures no such staking yield)," Kendrick wrote.

He added that SharpLink's announcement that it may conduct a share buyback if its mNAV falls below 1.0 creates a "hard floor" for its valuation.

Kendrick said in a note earlier in the month that the normalization of the mNAV of ETH treasuries above 1.0 makes them "very investable" and better buys than ETH ETFs.

However, the products have continued to attract inflows. Despite ETH's price correction over the past two days, US spot ETH ETFs pulled in $443.9 million on Monday, extending their net inflow streak to three consecutive trading days, worth over $1 billion.

Ethereum Price Forecast: ETH bullish play intact with price above $4,000

Ethereum has recovered the $4,500 mark on Tuesday, failing to sustain an extended move below the 14-day Exponential Moving Average (EMA).

ETH must hold the lower boundary of an ascending trendline, just above $4,000, and the 78.6% Fibonacci (Fib) retracement level to maintain a bullish structure. A decline below these levels could send its price toward $3,500.

ETH/USDT daily chart

On the upside, ETH has to maintain a firm close above $5,000 to validate another bullish pennant.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are slightly above their neutral levels, indicating a modest dominant bullish momentum.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi

More from Michael Ebiekutan
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).

Meme Coins Price Prediction: Dogecoin, Shiba Inu, Pepe recover, echoing Bitcoin rebound

Dogecoin, Shiba Inu, and Pepe are trading mixed as Bitcoin records minor gains on Monday, warming sentiment across the broader cryptocurrency market. Still, the incipient recovery in Dogecoin, Shiba Inu, and Pepe remains fragile amid the prevailing downtrend.

Bitcoin consolidates as downside risks persist

Bitcoin has made only three wave rallies from the November lows, which is one of the most important indications that more weakness may still lie ahead.

Polkadot's (DOT) dips, with token underperforming wider crypto markets

DOT $1.8269 fell 2% to $1.84 over the last 24 hours. Trading volumes were 7.8% above the seven-day moving average at 7.76 million tokens, according to CoinDesk Research's technical analysis model.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.