Ethereum May Reach $7,500, Outpacing Bitcoin, Says Banking Giant

Standard Chartered has significantly raised its forecast for Ethereum, predicting that the cryptocurrency could reach $7,500 by the end of this year, a substantial increase from its previous estimate of $4,000.

Key Takeaways:

Standard Chartered has raised its Ethereum price target to $7,500 by year-end, up from $4,000.
Increased demand from corporate treasuries and spot ETH products has driven this change.
The bank anticipates Ethereum will outperform Bitcoin due to institutional interest and its dominance in stablecoins.
Long-term targets for Ethereum include $25,000 by 2028, with possibilities of reaching $30,000 by 2029 and $40,000 by 2030.
The outlook remains dependent on factors such as ETF flows and macroeconomic conditions.

Ethereum

According to the bank’s digital assets team, this optimistic outlook is driven by increasing demand from corporate treasury buyers and the popularity of spot ETH products.

Bank Updates Ethereum Price Target

The lead analyst from Standard Chartered expects that growth in transaction fees on the Ethereum network, along with stronger institutional adoption, will propel ETH’s price higher. Additionally, the bank has adjusted its long-term projections, increasing its 2028 target to $25,000 and suggesting scenarios where the price could even hit $40,000 by 2030. These updated figures are based on models that predict expansion in stablecoins and tokenized assets on Ethereum.

Institutional Buying Sparks Increased Demand

Market research indicates that there has been substantial accumulation of Ethereum since June, with both spot ETF inflows and treasury firms acquiring nearly 4% of the circulating supply of Ether during this time.

ETHEREUM EXPECTED TO OUTPERFORM BITCOIN Standard Chartered notes that Ethereum's forecast has improved, indicating it may outperform Bitcoin. While Bitcoin's weak performance has impacted the overall cryptocurrency market, a growing institutional interest in Ethereum and its leading position in the stablecoin sector suggest a positive trend. — *Walter Bloomberg (@DeItaone) January 13, 2026

Reports suggest that treasury firms alone purchased around 2.3 million ETH in just over two months, a pace that Standard Chartered claims exceeds some previous accumulation periods seen with Bitcoin. The bank’s analysis also posits that Ether has strong potential to outperform Bitcoin, hinting that the ETH/BTC trading ratio could return to levels observed during the strong market rally of 2021.

The bank foresees that diminishing Bitcoin momentum, coupled with increased real-world use of Ethereum, could lead to a quicker rise in Ether's price compared to Bitcoin in the upcoming months.

BTCUSD now trading at $3,343. Chart: TradingView

Some sources have suggested even more ambitious long-term targets from similar models, estimating Ethereum could reach $30,000 by 2029 and $40,000 by 2030 under more bullish market conditions. However, achieving these targets relies on a significant increase in stablecoin utilization, the adoption of tokenized real-world assets, and ongoing demand for staking that would limit market supply.

Opinions among independent analysts vary, and some banks have provided more conservative year-end forecasts, highlighting the diversity of expert opinions in the field.

Market observers advise caution, noting that the relative performance of Ethereum and Bitcoin hinges heavily on ETF flows and decisions made by corporate balance sheets. The bank emphasizes that Ethereum’s substantial share of stablecoin activity and its role in decentralized finance make transaction fees and on-chain demand critical to its valuation models.

Moreover, it’s important to recognize that advances in scaling and Layer 1 throughput will be crucial if large traditional finance transactions transition onto the blockchain. The research also cautions that changes in macroeconomic conditions, significant outflows from major ETFs, or regulatory hurdles could quickly alter these projections.

Featured image from Unsplash, chart from TradingView