Ethereum Price Rallies 10%, Why Close Above $3,550 Is The Key

Ethereum price started a recovery wave from the $3,050 zone. ETH is up over 10% and is now struggling to clear the $3,550 resistance zone.

  • Ethereum started a decent recovery wave from the $3,050 zone.
  • The price is trading above $3,350 and the 100-hourly Simple Moving Average.
  • There was a break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to rise if it settles above the $3,550 resistance zone.

Ethereum Price Starts Recovery

Ethereum price extended its decline below the $3,350 and $3,200 levels, like Bitcoin. ETH even declined below the $3,150 support level before the bulls appeared. It tested the $3,050 zone.

A low was formed at $3,059 and the price is moving higher. There was a strong recovery wave above the $3,350 resistance. The price cleared the 50% Fib retracement level of the downward wave from the $3,675 swing high to the $3,059 low.

There was also a break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD. Ethereum price is now trading above $3,400 and the 100-hourly Simple Moving Average.

On the upside, immediate resistance is near the $3,520 level or the 76.4% Fib retracement level of the downward wave from the $3,675 swing high to the $3,059 low. The first major resistance is near the $3,550 level. The next key resistance sits at $3,675, above which the price might gain bullish momentum.

Ethereum Price

Source: ETHUSD on TradingView.com

In the stated case, Ether could rally toward the $3,820 level. If there is a move above the $3,820 resistance, Ethereum could even rise toward the $4,000 resistance. Any more gains might call for a test of $4,080.

Another Decline In ETH?

If Ethereum fails to clear the $3,550 resistance, it could start another decline. Initial support on the downside is near the $3,380 level.

The first major support is near the $3,320 zone. The next key support could be the $3,220 zone. A clear move below the $3,220 support might send the price toward $3,150. Any more losses might send the price toward the $3,050 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,380

Major Resistance Level – $3,550

High-Stakes Week For Bitcoin And Ethereum As Central Bank Decisions Approach: Key Predictions

This week could mark a pivotal moment in the first quarter of 2024 for the entire crypto market and the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), as major central banks, led by the Bank of Japan and the US Federal Reserve (Fed), prepare to announce their interest rate decisions

According to crypto futures exchange Blofin, these announcements will set the tone for monetary policy in the coming months. The impact of safe-haven sentiment has led to a pullback in both BTC and ETH prices, with traders expressing greater optimism for BTC. 

Bitcoin Price Movement Range Projected At 9.78%

As per a recent on-chain analysis report released by the exchange, crypto traders are expecting BTC’s price movement range to reach 9.78% over the next seven days, with a projected 30-day range of 20.33%. 

However, despite the expected volatility, the report indicates that traders remain bullish on BTC in the medium to long term. 

Skewness analysis suggests that price declines and pullbacks are expected to induce volatility, but the duration of this round of pullback is expected to be relatively short. Risk aversion to macro uncertainty is seen as the primary trigger. 

The latest dealers’ gamma distribution supports the expected wide range of BTC price fluctuations, with gamma peaks around $65,000 and $75,000. With the quarterly settlement approaching, market makers’ influence on BTC price movement is gradually recovering, providing support during price drops but making it challenging to surpass the $75,000 level. 

Bitcoin

In addition, on-chain data shows a decline in spot investors’ enthusiasm for buying BTC, although the number of addresses holding more than 100 BTC continues to increase, as seen in the chart above. The reduced number of addresses holding over 1,000 BTC suggests that significant holders have decided to sell at BTC’s new highs. 

Despite caution over potential price fluctuations, the hedging effect contributes to the increasing possibility of BTC price stabilization, making holding BTC a favorable choice.

Bearish Sentiment Dominates Front-Month Options For Ethereum

According to the report, similar to BTC, traders expect relatively high volatility levels for ETH in the short term, with projected price movement ranges of 10% over seven days and 20.32% over 30 days. However, the report suggests that traders are less optimistic about ETH’s future performance compared to Bitcoin. 

Furthermore, Blofin finds that bearish sentiment dominates the front-month options, while bullish sentiment remains favorable in the back-months. Blofin emphasizes that expectations of rate cuts may support the ETH price, but the pricing of Ethereum tail risk indicates “increased pessimism” regarding significant events impacting the ETH price, with spot Ethereum ETFs seen as a potential trigger. 

Finally, Blofin explains that the high leverage of altcoins has long been a “source of risk” in the cryptocurrency market. The recent price decline has led to the liquidation of many highly leveraged altcoin positions, resulting in lower annualized funding rates for perpetual contracts. 

This deleveraging of altcoins, coupled with their relatively small market share of less than 20%, has helped to mitigate risk and contribute to market stability, according to the report. However, despite the overall decline in altcoin leverage, speculation in meme coins continues.

Bitcoin

At present, the price of Bitcoin stands at $62,500, reflecting a significant decline of 7.5% within the last 24 hours. Similarly, Ethereum is trading at $3,276, experiencing a 6.8% drop during the same period.

Featured image from Shutterstock, chart from TradingView.com

DeFi Turmoil: Over $5 Million Wiped Out In Liquidations Amid Ethereum Price Drop

The decentralized finance (DeFi) ecosystem teetered on the brink of a meltdown yesterday as cascading liquidations swept through the market following a sharp drop in Ethereum (ETH) price. Over $5.4 million in collateralized assets were forcibly sold off in a 24-hour period, raising concerns about the stability of the DeFi house of cards.

Ethereum, the world’s second-largest cryptocurrency by market capitalization, bore the brunt of the liquidations. Its price plummeted over 9% to below $3,200, a far cry from its recent high of $4,092.

This price swing triggered a domino effect, as collateralized loans used to amplify returns in DeFi protocols faced margin calls. Data from Parsec paints a bleak picture, with a potential $24 million liquidation event looming if ETH price dips further to $3,008.

On-Chain Derivatives Spark $52 Million DeFi Liquidation Blitz

To make matters worse, within the same time frame, major on-chain derivatives have triggered liquidations totaling more than $52 million. After selling at a high of $4,100 for Ethereum, short traders recouped their losses by repurchasing the cryptocurrency at $3,200.

The pain wasn’t shared equally, however. Panic selling by long position holders, those betting on an ETH price increase, resulted in a whopping $104 million in liquidations compared to a  little over $16 million for short sellers. This imbalance could exacerbate the ETH price decline, creating a negative feedback loop.

The situation highlights the inherent risks associated with leverage in DeFi protocols, While leverage can magnify profits, it can also amplify losses, especially during periods of high volatility.

The bloodbath wasn’t confined to the DeFi space. The broader crypto market experienced heightened volatility as investors braced for the upcoming Federal Open Market Committee (FOMC) meeting. The potential for a Federal Reserve interest rate hike, coupled with weak inflows into Spot Bitcoin ETFs, cast a shadow of bearish sentiment across the digital asset landscape.

Ethereum Price At A Glance

Currently, Ethereum (ETH) is experiencing a decline of nearly 10% and is currently trading at $3,138. The 24-hour trading volume for ETH stands at $29 million.

Ethereum had a 20% retracement, making it the second most significant decliner among the top 10 cryptocurrencies. ETH traders maintained their sense of confidence by retaining and mitigating their positions in anticipation of an impending period of recovery.

Based on the prevailing market indicators, it is plausible that the price of Ethereum may evade more drops in the foreseeable future, as the bullish sentiment seeks to consolidate at the support level of $3,200, thereby establishing a foundation for a subsequent phase of recuperation.

Featured image from Pexels, chart from TradingView

Ethereum Price Bears Aim For $3,000, Can ETH Stay Above This Support?

Ethereum price extended its decline below $3,200. ETH is struggling and it seems like the bears are now aiming for a move toward the $3,000 support zone.

  • Ethereum started a downside correction below the $3,350 zone.
  • The price is trading below $3,350 and the 100-hourly Simple Moving Average.
  • There is a major bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could resume its decline if it stays below the $3,420 and $3,500 resistance levels.

Ethereum Price Breaks Support

Ethereum price remained in a short-term bearish zone below the $3,550 and $3,500 levels, like Bitcoin. ETH declined below the $3,350 support level to move further in a short-term bearish zone.

Finally, the price traded below the $3,200 support. A low was formed at $3,162 and the price is now consolidating losses. It is showing a few bearish signs below the 23.6% Fib retracement level of the downward wave from the $3,675 swing high to the $3,162 low.

Ethereum price is now trading below $3,350 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,280 level. The first major resistance is near the $3,350 level.

The next key resistance sits at $3,420. There is also a major bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD. It is close to the 50% Fib retracement level of the downward wave from the $3,675 swing high to the $3,162 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The next major resistance is near $3,550, above which the price might gain bullish momentum. In the stated case, Ether could rally toward the $3,650 level. If there is a move above the $3,650 resistance, Ethereum could even rise toward the $3,800 resistance. Any more gains might call for a test of $4,000.

More Losses In ETH?

If Ethereum fails to clear the $3,420 resistance, it could continue to move down. Initial support on the downside is near the $3,260 level.

The first major support is near the $3,200 zone. The next key support could be the $3,120 zone. A clear move below the $3,120 support might send the price toward $3,050. Any more losses might send the price toward the $3,000 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,260

Major Resistance Level – $3,420

Ether.fi (ETHFI) Sell-Off Intensifies As Arrington XRP Capital Shifts Holdings To Binance, Will $3 Support Hold?

ETHFI, the governance token for the Ether.fi staking protocol has seen a significant drop in price since its debut on Binance on Monday, March 18. After initially trading at $4.13, the token has lost over 25% of its value, raising concerns among investors. 

Nonetheless, recent on-chain activity has fueled speculation of further sell-offs, potentially threatening the token’s stability and its ability to hold the $3 mark. In particular, blockchain analytics firm Nansen has identified interesting behavior involving Arrington XRP Capital on the Ether.fi platform, highlighting some significant transactions.

Price Concerns For ETHFI 

In a recent post on social media site X (formerly Twitter), Nansen’s analysis reveals interesting activity involving venture capital fund Arrington XRP Capital on the Ether.fi platform. 

According to the blockchain analytics firm, Arrington XRP Capital minted 5,000 units of eETH, Ether.fi’s natively reshaped liquid staking token. Notably, these eETH tokens were distributed to ten different wallets, each containing 500 units.

Following the distribution, Arrington XRP Capital proceeded to claim a total of 200,498 ETHFI tokens across the ten wallets. The funds were transferred to another address, consolidating the acquired ETHFI tokens. 

In the final step of the observed activity, Arrington XRP Capital sent the entire balance of ETHFI tokens to the Binance cryptocurrency exchange, potentially for selling purposes, which could put further pressure on ETHFI.

However, the Ether.fi team has responded to the speculation surrounding the on-chain movements made by Arrington XRP Capital.

Ether.fi Clarifies 

According to Ether.fi, Arrington XRP Capital has been a consistent investor in the platform and has provided significant support since its inception. The statement further noted that as early adopters and active stakers, the Arrington team has actively staked its assets on Ether.fi, contributing to the platform’s growth. 

The multi-wallet distribution observed in recent activity did not surprise Ether.fi, as they were reportedly informed of this approach in advance.

Ether.fi claimed that splitting the assets into multiple wallets did not provide additional benefits or change the distribution outcome. The protocol alleged that consolidating the assets into a single wallet would have produced the same results.

The protocol alleged that these assets are part of their liquid funds, which are “actively traded.” The decision to transfer the assets to the Binance cryptocurrency exchange was motivated by the nature of their trading activities and liquidity needs, the Ether.fi team concluded.

Arrington Capital Addresses Speculations

The Arrington Capital team also clarified the context through a social media post. They clarified that they had been long-term investors, staking over $50 million of ETH since February 2023. 

The company claimed that the recent sale of a “small percentage” of its initial airdrop tokens amounted to less than $700,000, allegedly representing only 0.1% of the day’s trading volume.

Ultimately, Arrington Capital emphasized that their actions were not a “Sybil attack” and did not exploit the protocol’s distribution methodology. They wrapped up their response by claiming that airdrop distribution follows a linear model that is “unaffected” by distribution across multiple wallets.

Ether.fi

Featured image from Shutterstock, chart from TradingView.com

Record-Breaking GBTC Outflows Send Bitcoin Down 14% To $62,000

As reported by Fortune Magazine, the cryptocurrency market has been experiencing significant volatility as Bitcoin (BTC) has experienced a sharp decline that has had a domino impact on other cryptocurrencies. The recent drop in the price of Bitcoin, coupled with outflows from Grayscale’s GBTC, has raised concerns among investors. 

Bitcoin Sees 14% Correction From ATH

Bitcoin suffered a 14% drop since reaching its all-time high (ATH) of $73,700 last week, briefly touching $62,483 on Tuesday morning. However, it recovered and stabilized around $64,900, just below the $65,000 mark. 

The decline was attributed to record outflows of over $640 million from Grayscale’s Bitcoin Trust (GBTC). In comparison, other spot Bitcoin ETFs saw inflows of less than $500 million, resulting in a net outflow of $15 million on Monday, according to Bloomberg ETF expert James Seyffart. 

Bitcoin

This outflow from GBTC, combined with the cautious sentiment surrounding the Federal Open Market Committee (FOMC) meeting in the US, has had a significant impact on Bitcoin’s performance.

As recently reported by NewsBTC, investors exhibited caution ahead of the FOMC meeting, closely monitoring the potential changes in interest rates. Recent higher-than-expected inflation data, as indicated by the US Consumer Price Index (CPI) and Producer Price Index (PPI), dampened expectations of interest rate cuts. 

According to Fortune, the CME FedWatch Tool projected a 99% likelihood of rates remaining unchanged, further affecting market sentiment. Per the report, investors were keen to gauge the Federal Reserve’s stance on monetary policy, contributing to the cautious trading environment.

In the same context, the Bank of Japan raised its key interest rate from -0.1% to 0% to 0.1% in response to rising consumer prices. This was the first rate increase in 17 years.

Crypto Futures Traders Take A Hit

The drop in Bitcoin’s price had a cascading effect on other cryptocurrencies. Major altcoins like Ethereum (ETH) and Solana (SOL) experienced significant declines of 8.1% and 12.5% over the past 24 hours, respectively. 

Meme coins, including Floki Inu (FLOKI), Bonk Inu (Bonk), and Dogecoin (DOGE), also suffered losses of 34%, 28.5%, and 24.8%, respectively, during the past week. 

The decline in cryptocurrency prices resulted in over $440 million worth of liquidations for traders of crypto futures. Traders who had leveraged positions betting on higher prices faced significant losses. Most of these liquidations occurred on Binance, totaling $212 million, followed by OKX at $170 million. 

Bitcoin

Despite its price correction, BTC retains substantial gains of over 26% and 132% in the past thirty days and year-to-date timeframe, respectively.

Featured image from Shutterstock, chart from TradingView.com

Ethereum Price Extends Losses, Can Bears Send ETH To $3,200?

Ethereum price extended its decline below $3,500. ETH is showing a few bearish signs and there could be a drop toward the $3,200 support zone.

  • Ethereum started a downside correction below the $3,550 zone.
  • The price is trading below $3,550 and the 100-hourly Simple Moving Average.
  • There is a major bearish trend line forming with resistance at $3,520 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could resume its decline if it stays below the $3,520 and $3,550 resistance levels.

Ethereum Price Breaks Support

Ethereum price started a downside correction below the $3,720 and $3,650 levels, like Bitcoin. ETH declined below the $3,550 support level to move further in a short-term bearish zone.

Finally, the price traded below the $3,420 support. A low was formed at $3,365 and the price is now consolidating losses. It is showing a few bearish signs below the 23.6% Fib retracement level of the downward move from the $3,675 swing high to the $3,365 low.

Ethereum price is now trading below $3,550 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,440 level. The first major resistance is near the $3,520 level. There is also a major bearish trend line forming with resistance at $3,520 on the hourly chart of ETH/USD.

The trend line is close to the 50% Fib retracement level of the downward move from the $3,675 swing high to the $3,365 low. The next major resistance is near $3,600, above which the price might gain bullish momentum.

Ethereum Price

Source: ETHUSD on TradingView.com

In the stated case, Ether could rally toward the $3,650 level. If there is a move above the $3,650 resistance, Ethereum could even rise toward the $3,825 resistance. Any more gains might call for a test of $4,000.

More Downsides In ETH?

If Ethereum fails to clear the $3,520 resistance, it could continue to move down. Initial support on the downside is near the $3,365 level.

The first major support is near the $3,320 zone. The next key support could be the $3,250 zone. A clear move below the $3,250 support might send the price toward $3,200. Any more losses might send the price toward the $3,150 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,365

Major Resistance Level – $3,520

Ether.fi $210M Airdrop Sparks Market Turbulence, ETHFI Value Drops By 35%

ETHFI, the governance token of the decentralized liquid staking protocol Ether.fi, debuted for $4.13 following its distribution through its airdrop on March 18. 

However, since the $210 million airdrop, the value of ETHFI has experienced a significant decline, plummeting over 35% to its current trading price of $3.05, according to CoinGecko data.

ETHFI Airdrop Attracts 20,000 Participants

Market expert Tom Wan has provided a summary of the ETHFI airdrop. Out of the total supply of 16.8 million ETHFI tokens, approximately 28% have been claimed by participants. 

The airdrop attracted around 20,000 claimers, showcasing considerable interest in the token distribution. Notably, the top wallets, accounting for 1.67% of the total distribution, have the potential to receive between 10,000 and 25,000 ETHFI tokens, reflecting substantial holdings.

Ether.fi

Most claimers, comprising approximately 67% of participants, are expected to receive a lower allocation of ETHFI tokens, ranging from 175 to 500. 

This distribution strategy aims to ensure a broader and more equitable dispersion of the tokens among participants. However, an interesting observation is that 76% of claimers have transferred their ETHFI tokens to other wallets, indicating a potential desire for liquidity or trading activities.

Furthermore, it is noteworthy that 38% of the token receivers are new wallets, suggesting an expansion of the ETHFI user base as of May 1, 2023. This influx of new participants showcases a growing interest in the governance and utility offered by Ether.Fi’s protocol.

Ether.fi Witnesses Surge In Total Value Locked

Ether.fi has experienced notable growth in net deposits and Total Value Locked (TVL), as evidenced by data provided by Token Terminal. However, the platform has faced fluctuations in its active user base. 

According to Token Terminal, net deposits on Ether.fi have significantly increased, reaching $2.99 billion over the past 30 days alone. This marks a significant growth rate of 136.9%.

Simultaneously, the TVL on Ether.fi has mirrored the surge in net deposits, which also amount to $2.99 billion over the same 30-day period. This metric represents the total value of assets, predominantly cryptocurrency, locked within the protocol. 

However, while Ether.fi has witnessed robust growth in net deposits and TVL, the platform has experienced fluctuations in its active user base. Daily active users have shown a considerable decline of 54.3% over the past 30 days, currently standing at 506. 

Ether.fi

Similarly, weekly active users have experienced a more moderate decline of 3.5%, currently standing at 5,780. This suggests that while there has been a slight reduction in user engagement every week, a significant portion of the user base remains actively involved with the protocol.

The most substantial decline in user activity is observed in monthly active users, with a notable drop of 68.9% over the past 30 days. The figure currently stands at 14,740 users. 

Overall, the distribution of the ETHFI token through the airdrop has garnered significant attention and participation. At the same time, the token’s value has experienced a decline since its initial listing, the long-term potential and impact of ETHFI within the Ether.Fi ecosystems are yet to be fully realized.

Ether.fi

Featured image from Shutterstock, chart from TradingView.com

Solana Surpasses Ethereum In Major Metric Amid Surge Above $200

Solana has recently become one of the trendiest cryptocurrencies in the space, capturing the interest of both crypto investors and enthusiasts in the space. The popular cryptocurrency has witnessed a significant surge in network activity, surpassing even that of Ethereum, the world’s second-largest cryptocurrency. 

Solana Outpaces Ethereum Network Activity

On March 16, Solana experienced a major increase in its overall network activity, pushing its capacity to its limits amidst the growing demands. The network had surged past Ethereum’s total trading volume and exceeded its daily trading volume by more than $1.1 billion, according to data by DefilLama.   

Specifically, Solana’s 24-hour trading volume had recorded almost $3 billion, surging past Ethereum’s daily volume of $2.04 billion. During the surge, the network witnessed an unprecedented amount of trading activities, which resulted in failed transactions and a surge in ping times. 

As highlighted by Solana Validator, the cryptocurrency network’s ping time on March 18, had jumped to a staggering 46 seconds, causing about a 30% to 40% failed transactions. The validator’s report also revealed a steady and rapid increase in Solanan’s transaction count, recording over 276 million transactions at the time of writing, with about 2,107 transactions per second. 

This rise in Solana’s network activity has been attributed to the surge in interest in Solana-based meme coins. On Thursday, March 14, degens eagerly sought after a new meme coin called Book of Meme (BOME), which had experienced an unprecedented bullish spike that triggered its market capitalization to rise from almost zero to a staggering $1.45 billion. 

During these periods, the price of Solana also rallied alongside, witnessing an unexpected price surge that propelled it by more than 30% in the past week. The cryptocurrency has been on a steady momentum since the beginning of the year, displaying slight price corrections before continuing on its upward trajectory. 

SOL Price Rides The Bullish Wave

Amidst Solana’s burgeoning popularity and rising transaction volumes, the cryptocurrency saw a price increase to more than $200, reflecting a daily surge of approximately 8.9%, at the time of writing. The cryptocurrency’s market capitalization is also up by 11.10%, recording over $89 billion and steadily closing towards the $100 billion mark. 

Due to its overwhelming network activities and growing popularity, Solana has successfully gained the position of the 4th largest cryptocurrency by market capitalization, overtaking BNB Chain (BNB) by more than four billion, according to CoinMarketCap. 

Moreover, the cryptocurrency has reached peak levels globally in terms of Google search interest,  hitting a new all-time high. This surge has been attributed to the increasing interest and demand for the popular digital asset. 

Solana price chart from Tradingview.com (Ethereum)

Standard Chartered Predicts Bitcoin At $150,000, ETH At $8,000 By Year-End

Standard Chartered’s latest research notes offer a very bullish outlook for the major digital assets, Bitcoin (BTC) and Ethereum (ETH), by the end of 2024 and beyond. The bank’s analysts project Bitcoin could reach $150,000, while Ethereum could hit the $8,000 mark.

These projections come amidst a backdrop of significant developments in the crypto space, including the launch of Bitcoin spot Exchange-Traded Funds (ETFs) and Ethereum’s recent Dencun upgrade.

Bitcoin’s Path To $150,000

The bank’s research delves deep into the factors propelling Bitcoin’s potential surge to $150,000 by year-end. Central to this projection is the influence of Bitcoin spot ETFs, which, since their launch on January 11, have seen rapid inflows exceeding increases in open interest.

According to the bank, this suggests a more robust and sustainable positioning for Bitcoin, distinct from previous speculative peaks. “Rapid inflows to the new Bitcoin (BTC) spot ETFs have dominated […] Most of the inflows are likely to be sticky pension-type flows,” Geoff Kendrick and Suki Cooper elucidate, highlighting the newfound stability in Bitcoin investment trends.

Three pivotal analyses form the cornerstone of Standard Chartered’s Bitcoin valuation:

  1. Gold Analogy: Drawing parallels with the gold market’s response to the introduction of US gold ETFs, the bank estimates Bitcoin could rise to the $200,000 level, marking a 4.3x increase from its pre-ETF price.
  2. Two-Asset Optimization: By optimizing a portfolio with 80% gold and 20% Bitcoin at current gold prices, the analysis suggests a Bitcoin level around $190,000.
  3. ETF Inflows Correlation: Linear extrapolation based on the correlation between ETF inflows and Bitcoin price points to a possible $250,000 level, assuming total ETF inflows around the bank’s midpoint estimate of $75 billion.

Standard Chartered notes that these three measures suggest “that $200,000 is the ‘correct’ end-2025 price level for BTC, […] and that it is likely to be the new midpoint for a sideways trading range at that time.”

Further the research notes that an “overshoot to $250,000 is likely at some point in 2025 if ETF inflows continue apace and/or reserve managers buy BTC.” Previously, the bank only predicted a Bitcoin price of $100,000 by the end of 2024.

Ethereum’s Road To $8,000

Ethereum’s expected climb to $8,000 by the end of 2024 is anchored in two transformative developments: the Dencun upgrade and the expected approval of ETH spot ETFs. The recent Dencun upgrade, by significantly lowering transaction costs on layer 2 blockchains, enhances Ethereum’s competitive edge.

“Ethereum (ETH) has just undergone the ‘Dencun’ upgrade, which dramatically lowers the cost of transactions […] making ETH more competitive,” the research notes.

The forecast also hinges on the anticipation of US SEC approval for ETH ETFs by May 23, a decision poised to catalyze substantial inflows into Ethereum. Drawing from the Bitcoin ETF experience, Standard Chartered expects similar enthusiasm for Ethereum, with projected inflows of 2.39-9.15 million ETH (equivalent to roughly $15-45 billion).

This substantial capital infusion is seen as a crucial lever for Ethereum’s price surge. “We expect significant ETF-driven inflows to ETH […] This could drive ETH to the $8,000 level by end-2024,” the bank elaborates, underscoring the parallel potential for growth akin to Bitcoin’s trajectory.

The Prognosis For 2025 And Beyond

Looking further ahead, Standard Chartered ventures into the terrain of 2025 predictions, where the bank sees the ETH-to-BTC price ratio ascending back to the 7% level, a hallmark of the 2021-22 period.

This adjustment forecasts an Ethereum price of $14,000 by the end of 2025, given the projected Bitcoin level of $200,000. Such a scenario underscores the bank’s optimism about the enduring value proposition and growth potential of these leading digital assets in the medium term.

At press time, BTC traded at $68,401.

Bitcoin price