Goldman Sachs analysts predict Ethereum will rally by 80% toward $8,000 target

  • If Ethereum maintains its correlation to inflation expectations, analysts expect a rally of 80% within the next two months. 
  • The largest altcoin recently hit its highest monthly close in history.
  • Ethereum 2.0 Altair Beacon chain update was a success and the altcoin is now heading toward deflation with the “Merge.”

Goldman Sachs analysts have predicted that the Ethereum price would break out within the next two months. The altcoin closed October posting over 40% in gains, and its market capitalization is currently six times that of the second-largest altcoin, Binance Coin (BNB)

Investment bankers see possibility of ETH price hitting $8,000

In a note circulated by Goldman Sachs Global Markets managing director Bernhard Rzymelka, cryptocurrencies have traded along a line with inflation breakevens in between for nearly two years now. The director refers to the Bloomberg Galaxy Crypto Index, which compares inflation to the USD 2-year, 2-year forward inflation swap. 

An inflation swap is a derivatives contract between parties that transfer inflation risk by exchanging fixed cash flows, and here the 2-year,2-year is the average inflation rate over a two‑year period starting in two years.

Correlation is not considered causation, however, it is a clear indication that it acts as a driving force for crypto asset rallies and dips. Analysts argue that if the current market-based views of inflation pressures persist, it may be considered“either a sign of exhaustion and peaking… or a starting point of an accelerating rally upon a break higher.”

Analysts hint at the Ethereum price rally and set a target of $8,000 for ETH within the next two months if the historical correlation with inflation persists. 

USD Inflation Swap 2Y2Y Forward.

USD Inflation Swap 2Y2Y Forward

In the case of Ethereum, the inflation swap is key to price prediction, since Ethereum has tracked inflation markets closely, reflecting their pro-cyclical nature as a network-based asset. 

Ethereum closed in October at $4,287.56, its highest monthly close of all time. The successful implementation of the Altair Beacon chain upgrade has taken Ethereum another step closer to the “Merge” (transition from proof-of-work to proof-of-stake). 

Within the past twelve months, the altcoin hit its all-time high and all-time low price. Nearly $3 billion worth of ETH tokens have been burned since the implementation of EIP-1559. Consistently higher burn is expected to drive ETH deflation and Ethereum prices higher. 

FXStreet analysts have evaluated the ETH price trend and predicted that Ethereum will continue pushing higher toward $5,400.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

MANTA suffers 4% pullback after unlocking tokens worth $40 million

MANTA suffers 4% pullback after unlocking tokens worth $40 million

Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks. 

More Cryptocurrencies News

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30. 

More Ripple News

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000. 

More Bitcoin News

If Bitcoin restarts bull run, these altcoins are likely to explode Premium

If Bitcoin restarts bull run, these altcoins are likely to explode

If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis