Standard Chartered Bank: Expected Ethereum performance to "significantly outperform the market" by 2026, reaching $7,500 by the end of the year

On January 12, Standard Chartered Bank issued a positive outlook on Ethereum. Geoffrey Kendrick, the bank’s Global Head of Digital Asset Research, stated that although recent price forecasts have been revised downward amid the overall weakness in the crypto market, he expects Ethereum to outperform other cryptocurrencies in 2026. “I believe 2026 will be the year of Ethereum, just like 2021,” Kendrick wrote in the notes of the bank’s latest digital asset report. He pointed out that the growth in blockchain and on-chain product adoption will be key factors driving Ethereum to “significantly outperform the market.” The report noted that Bitcoin’s continued dominance in the space has weakened the outlook for digital assets’ appreciation against the US dollar, as its underperformance has dampened expectations. However, Kendrick emphasized that Ethereum’s momentum is strengthening relative to Bitcoin. Standard Chartered Bank expects the ETH/BTC exchange rate to gradually return to the high levels of around 0.08 seen in 2021, thanks to Ethereum’s structural advantages not shared by other cryptocurrencies, including its dominance in stablecoins, real-world assets, and decentralized finance, as well as ongoing network scaling efforts. The bank believes that the planned improvements to Ethereum Layer 1 throughput, including measures taken with the Fusaka upgrade in December last year, are crucial, as historical data shows higher throughput often translates into higher market capitalization. Additionally, a more favorable regulatory environment could further improve the outlook, especially with the potential passage of the U.S. Clarity Act in the first quarter. If approved, combined with the resilience of the U.S. stock market, it could push Bitcoin to a new all-time high in the first half of the year. The bank believes this scenario would also support Ethereum’s long-term upside. This forecast coincides with a divergence in Standard Chartered’s stance on Bitcoin and Ethereum—while the bank has lowered its absolute price targets for Ethereum over the next few years, its outlook for Ethereum remains more optimistic than for Bitcoin. The bank currently projects Ethereum to reach $7,500 by the end of 2026, down from its previous forecast of $12,000; its targets for 2027 and 2028 have been adjusted to $15,000 and $22,000, respectively, both below earlier expectations. However, Standard Chartered has raised its long-term outlook, increasing its 2029 year-end target to $30,000 and adding a $40,000 target for the end of 2030.