While the Bitcoin or Ethereum debate rages on between early investors and maxis, London-based bank Standard Chartered has taken 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, almost 263,000 tokens burned with 7,500,000 locked in ETH 2.0 deposit contracts. Some analysts now predict a huge surprise in the future.
The bank, in a recent research note, said Ethereum could outperform Bitcoin over the next few years, even stating it ‘structurally’ values the world’s second-largest cryptocurrency by market cap at over $35,000.
British banking giant sees Ethereum as a financial market filled with different services for users. 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.
The report stated:
“Structurally, we value Ethereum at USD 26,000-35,000…We see the Ethereum-Bitcoin cross doubling to 0.161, a level at which ETH’s market cap would catch up to BTC’s.
Akin to being a currency like Bitcoin, it (Ethereum) is more akin to a financial market in which non-linear financial transactions such as lending, insurance, and exchanges can operate.”
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.
Despite of its great potentials, Ethereum doesn’t seem to have a 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.
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