Standard Chartered's chief of Digital Assets Research says there is still room for rises in Ethereum, even after recent price fluctuations. According to Geoffrey Kendrick, rising institutional demand and reduced exchange liquidity have tightened supply and could push the ether higher towards its $7,500 year-end target.
Institutional demand
The report reveals that the company's digital asset financing company has purchased around 2.5% of its circular ETH since June. Spot ETH Exchange Trading Funds added nearly 5% over the same period.
Based on these figures, since June, roughly 7.5% of supply has been drawn into the company's finances and ETFs, with significant changes in relatively short periods. Kendrick expects these companies will be able to hold up to 10% of the ether that will eventually circulate.
Exchange spills and price movements
The Exchange-Balance tracker shows the substantial movement of coins from trading platforms. Over 74,000 ETH (approximately $340 million at recent prices) have been withdrawn from the exchange led by Binance.
Such spills are often read as signs of a decline in short-term sales pressure. Ethereum slid about 5% and bouncing on Tuesday. It trades nearly $4,618, with a 4.6% increase over the last 24 hours and a 10% increase in weekly gains, according to Coinmarketcap.
Resistance level to be seen
Traders are seeing a short-term barrier of around $4,600. A clear move above that level could open up $4,700, with $4,800 being the next checkpoint before the previous high.
The assets temporarily hit an all-time high of $4,950 on August 24th. Kendrick's $7,500 forecast for the end of the year means an increase of around 60% from current prices.
Corporate movements and market supply
The report rated companies such as Sharplink Games and Bitmine Immersion in relation to ETH exposure. Kendrick compares these companies with strategic approaches and Bitcoin, claiming that some companies are below what he considers fair value.
Sharplink has announced a stock repurchase program that triggers if the metric net asset value falls below 1.0.
Its corporate behavior supports these stocks, but is not the same as permanent removal of ETH from distribution, wherever staking or ETF custody is possible.
The bullish painting is based on some major assumptions. Macro shock, a rapid shift in investor sentiment, or a regulatory move can quickly reverse flow.
Many buyers can pursue the same theme and create crowded locations. Also, as sentiment changes, these positions can amplify volatility.
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