Standard Chartered Bank: Ethereum is expected to significantly outperform the market by 2026, reaching $7,500 by year-end

ChainCatcher reported that Standard Chartered Bank has sent a positive signal regarding the outlook for Ethereum. Geoffrey Kendrick, the bank's Global Head of Digital Asset Research, stated that although the bank has lowered its short-term price forecasts amid 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 a note attached to the bank's latest digital asset report.

He pointed out that the growing adoption of blockchain and on-chain products will be a key factor driving Ethereum to significantly outperform the broader market. The report noted that Bitcoin's continued dominance in this area has dampened the appreciation prospects of digital assets relative to the US dollar, as its performance has fallen short of expectations. However, Kendrick emphasized that Ethereum's momentum is strengthening relative to Bitcoin.

Standard Chartered expects the ETH/BTC exchange rate to gradually return to the high level of around 0.08 seen in 2021, thanks to Ethereum's structural advantages that other cryptocurrencies lack. These include its dominance in stablecoins, real-world assets, and decentralized finance, as well as ongoing network scaling efforts.

The bank believes that planned improvements to Ethereum Layer 1 throughput (including measures taken with the Fusaka upgrade last December) are crucial, as historical data shows that higher throughput often translates into higher market capitalization. In addition, a more favorable regulatory environment could further improve the outlook, with particular mention of the US "Clarity Act," which is expected to pass in the first quarter. If approved, combined with the resilience of the US stock market, this 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 comes as Standard Chartered's stance on Bitcoin and Ethereum diverges—while it has lowered its absolute price targets for Ethereum in the coming years, its outlook for Ethereum is more positive than for Bitcoin. The bank now expects Ethereum to reach $7,500 by the end of 2026, down from the previous forecast of $12,000; targets for 2027 and 2028 have been adjusted to $15,000 and $22,000, respectively, both lower than earlier expectations. However, Standard Chartered has raised its long-term outlook, increasing its end-2029 forecast to $30,000 and adding a new target of $40,000 for the end of 2030.