Institutional investors are now betting that Ethereum can go up due to the growth of the financial market. Standard Chartered analysts are confident that the growth potential of Ethereum can outpace Bitcoin, the first cryptocurrency by market capitalization. However, technical indicators reveal that before a future advance, ETH is bound to pull back.
Standard Chartered is bullish on Ethereum. ETH is now getting more attention, thanks to the London fork, a recent innovation on the blockchain. The network records that so far, 224,700 tokens have been burned, with 7,500,000 locked into ETH 2.0 deposit contracts. Some analysts are now anticipating a big surprise in the future.
Among the many financial institutions that have great anticipation for Ethereum’s performance, Standard Chartered is the latest. From a recent report, the British banking giant sees Ethereum as a financial market filled with various services for users.
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This is from the fact that the network is a platform for lending and reaping interest on investments and more. Moreover, the report made it clear that Ethereum can be matched with Bitcoin’s market cap through this tool.
Furthermore, Standard Chartered offers a price range of $26,000 to $35,000 as a potential target for Ethereum if BTC reaches $175,000.
The multinational financial services company explains that the target is a 1,000% increase over current price levels. It is envisaged that Ethereum will raise a market cap of around $4 trillion with ETH at $35,000. However, this will depend on the downturn effect of the EIP-1559 update.
Ethereum drops ahead of the upside
Regardless of its great potential, Ethereum does not have a bullish outlook in the short term.
From the Tom DeMark (TD) serial indicator, the Ethereum daily chart is highlighting a sell signal. The bearish formation is built in the form of a green nine candle. When the indicator is from 1 to 4 the daily candles correction that precedes the resumption of the uptrend.
Validation With a daily close below the record $3,800, ETH is likely to swing towards the 61.8% or 50% Fibonacci retracement level. Significant demand barrier levels are at $3,350 and $3,050, respectively.
At the time of writing, ETH is trying to recover previous losses | Source: BTCUSD on TradingView.com
However, Ethereum fell to $3,350 indicating a 15% drop due to the volatility of the crypto market. Similarly, Bitcoin is down more than 10% even as other digital assets are down by 20% or more.
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It could take a daily candle close above $4,030 from the recent high to disrupt the bearish theory. By meeting these conditions, Ethereum will signal a bullish race towards the 127.2% Fibonacci retracement mark at $5,115.
Featured image from Pixabay, chart from TradingView.com
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