Standard Chartered’s Ethereum price analysis reveals a hidden buying spree: institutions have absorbed nearly 4% of supply since June, setting the stage for a year-end surge that could propel the asset to $7,500.
Summary
- Standard Chartered raises Ethereum year-end price target to $7,500, up from $4,000.
- Corporate treasuries and spot ETFs have absorbed nearly 4% of ETH’s circulating supply since June.
- Meanwhile, Ethereum derivatives show record open interest on Kraken without excessive leverage.
On August 13, Ethereum (ETH) traded within striking distance of a fresh all-time high while Standard Chartered analysts made an upward revision to their Ethereum forecast. The analysts nearly doubled its year-end price target to $7,500, from its previous $4,000 estimate.
The bank’s digital assets research team, led by Geoff Kendrick, pointed to accelerating institutional demand, with corporate treasuries and spot ETFs collectively absorbing 3.8% of ETH’s circulating supply in just over two months. That pace of accumulation, Kendrick noted, is almost twice as fast as Bitcoin’s peak institutional inflows during its 2021 bull run.
Three pillars fueling Ethereum price surge to $7,500
Standard Chartered’s bullish outlook on Ethereum hinges on three converging factors: institutional accumulation, policy tailwinds, and the network’s evolving technical infrastructure.
The bank’s analysts estimate that corporate treasuries and spot ETFs have absorbed roughly 3.8% of ETH’s circulating supply since early June, with public companies like BitMine Immersion and SharpLink Gaming alone acquiring 2.3 million ETH. This signals a strategic shift toward treating Ether as a treasury reserve asset, the analysts said.
Policy developments further strengthen the case. According to the analysts, the passage of the GENIUS Act, which establishes a regulatory framework for stablecoins, directly benefits Ethereum as the primary settlement layer for dollar-pegged tokens. Over half of all stablecoins, including $131 billion worth of USDT and USDC, operate on Ethereum, driving consistent demand for ETH to pay transaction fees.
Standard Chartered projects the stablecoin market could grow eightfold by 2028, reaching $2 trillion, a surge that would cement Ethereum’s role as the backbone of crypto’s dollarized economy.
Technological upgrades also play a critical role. Per the bank’s analysts, the Ethereum Foundation’s focus on scaling Layer 1 for high-value transactions, while offloading volume to Layer 2s like Base and Arbitrum, could make the network more attractive for institutional adoption.
A derivatives market maturing in real time
While spot markets dominate headlines, Ethereum’s derivatives activity reveals a more nuanced story. Kraken’s ETH perpetual futures recently hit an all-time high in open interest, becoming the exchange’s most-traded contract. Yet funding rates remain subdued, suggesting traders are deploying capital strategically rather than chasing leverage-fueled rallies.
Alexia Theodorou, Kraken’s Director of Derivatives, said in a statement obtained by crypto.news that this reflects a more mature market:
“In the current market environment, many traders appear to be turning to perpetual futures as a capital-efficient way to gain directional exposure to Ether, allowing them to express conviction while keeping capital available for other opportunities. This view is reinforced by the fact that funding rates for ETH perps, while positive, remain relatively moderate, suggesting the market has yet to reach peak euphoria,” Theodorou said in a written statement.
This measured positioning aligns with Standard Chartered’s thesis that the Ethereum price rally has room to run.
The long-term roadmap: $25,000 and beyond
Standard Chartered’s updated targets outline a multiyear trajectory for Ethereum: $12,000 by late 2026, $18,000 in 2027, and $25,000 by 2028–29. These projections assume Ethereum maintains its dominance in stablecoins and DeFi, where it hosts 65% of total value locked, while capturing a larger share of traditional finance activity.
The bank contrasts Ethereum’s price path with Bitcoin’s, maintaining a $200,000 end-2025 target for BTC but emphasizing ETH’s dual appeal as both a store of value and a productive asset. “ETH’s investability for institutions isn’t just about price appreciation,” Kendrick argues. “It’s about capturing the value of the ecosystem being built on top of it.”