The head of digital assets research at Standard Chartered, Geoffrey Kendrick, asserts that Ethereum has potential for further price increases despite its recent fluctuations. He cites rising institutional demand and decreasing exchange liquidity as factors that could drive Ether towards his year-end target of $7,500.
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Increasing Institutional Demand
Recent reports indicate that corporate treasury firms dealing in digital assets have acquired approximately 2.5% of circulating ETH since June, while spot ETH exchange-traded funds have grown by nearly 5% during the same timeframe.
These figures suggest that around 7.5% of the supply has been absorbed by corporate treasuries and ETFs since June, signaling a significant shift within a brief period. Kendrick anticipates that these corporations may eventually possess up to 10% of all circulating Ether, reinforcing his bullish outlook.
Exchange Withdrawals and Price Fluctuations
Tracking data reveal a significant outflow of coins from trading platforms. On a single day, over 74,000 ETH — approximately $340 million at current prices — was taken off exchanges, primarily from Binance.
Such withdrawals are generally interpreted as a reduction in immediate selling pressure. Ethereum experienced a 5% dip on Tuesday before recovering. As per CoinMarketCap, it is now trading around $4,618, reflecting a 4.6% increase in the past 24 hours and a 10% rise over the week.
Key Resistance Levels
Traders are monitoring short-term resistance points around $4,600. A decisive breakout above this mark could lead to levels around $4,700, with $4,800 being the next significant barrier before the previous high.
The asset briefly reached an all-time high of $4,950 on August 24. Kendrick’s projection of $7,500 by year-end suggests a potential 60% increase from current levels, which would necessitate sustained strong inflows and stable macroeconomic conditions.
Corporate Actions vs. Market Supply
Reports highlight companies like SharpLink Gaming and Bitmine Immersion being assessed based on their ETH holdings. Kendrick likens these firms to Strategy’s investment approach with Bitcoin, suggesting that some are undervalued.
SharpLink has initiated a share buyback plan that will take effect if its net asset value falls below 1.0, potentially creating a price floor for the stock.
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While this corporate activity supports those stocks, it does not equate to a permanent reduction in ETH circulation like staking or ETF custody does.
The bullish scenario relies on several significant assumptions. Sudden macroeconomic events, swift changes in investor sentiment, or regulatory actions could rapidly alter the flow dynamics.
Crowded positions may emerge when numerous buyers pursue the same trend, potentially amplifying volatility if sentiment shifts.
Featured image from Unsplash, chart from TradingView
