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Ethereum (ETH) continues to capture investor attention after hitting a fresh all-time high last week, and Standard Chartered’s global head of digital assets research, Geoffrey Kendrick, believes the rally is far from over. Despite a brief correction, Kendrick has doubled down on his bullish Ethereum outlook, reaffirming his $7,500 year-end price target and calling ETH “cheap” at current levels.
Ethereum’s Recent Price Action
Ethereum surged to an all-time high of $4,955 on August 24, driven by strong inflows into spot ETH exchange-traded funds (ETFs), treasury accumulation, and growing institutional adoption. However, the token faced a sharp sell-off earlier this week, slipping by nearly 5% before bouncing back.
At the time of writing, ETH is trading around $4,624, recovering more than 4% in the past 24 hours and outpacing both Bitcoin and the broader crypto market. On a weekly timeframe, ETH is up more than 10%, highlighting strong underlying momentum despite short-term volatility.
Kendrick sees the dip as nothing more than a buying opportunity. “The recent sell-off is a great entry point for investors,” he said, emphasizing that Ethereum remains significantly undervalued compared to its long-term potential.
Why Standard Chartered Sees ETH as “Cheap”
Kendrick argues that both ETH itself and Ethereum-focused treasury firms are undervalued. His bullish stance is anchored on multiple drivers:
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Treasury Accumulation: Ethereum digital asset treasury (DAT) companies have purchased roughly 2.6% of the total ETH supply since June.
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ETF Demand: Spot ETH ETFs have absorbed another 4.9% of circulating Ether in the same period, creating a powerful structural demand base.
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Staking Yield Advantage: Treasury firms benefit from Ethereum’s 3% staking yield, which adds to their long-term valuation case.
In Kendrick’s view, these dynamics make Ethereum “cheap” at current levels, especially as its role in corporate balance sheets expands. He even predicts that treasury firms could eventually hold 10% of circulating ETH, mirroring the role that Bitcoin treasuries like MicroStrategy have played in BTC markets.
Comparing ETH Treasuries to MicroStrategy
One of Kendrick’s strongest arguments lies in the comparison between Ethereum treasuries and MicroStrategy (MSTR), the largest public Bitcoin holder.
Kendrick notes that ETH treasury companies such as SharpLink Gaming and Bitmine Immersion are currently trading below MSTR’s net asset value (NAV) multiples, despite having structural advantages such as yield capture.
“Given that ETH treasury companies are able to capture ETH’s 3% staking yield, I see no reason for the NAV multiples to be below MSTR’s multiple,” he wrote.
Adding further confidence, SharpLink Gaming recently announced plans to repurchase shares if its mNAV falls below 1.0, creating what Kendrick described as a “hard floor” for valuations.
Market Dynamics Fueling Ethereum’s Rally
Beyond corporate treasuries and ETFs, Ethereum’s strength is being reinforced by multiple market dynamics:
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Whale Accumulation: On-chain data shows that large holders have been steadily increasing their ETH positions, signaling confidence in long-term price appreciation.
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Exchange Outflows: Centralized exchanges saw net outflows of 74,500 ETH ($344M) within 24 hours, led by Binance. Reduced exchange supply tightens liquidity and supports upward pressure on price.
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Short Squeeze Momentum: Recent liquidations of over-leveraged short positions triggered a historic short squeeze, fueling ETH’s sharp rebound.
Combined, these forces create an environment where supply is constrained while demand remains elevated, a classic setup for continued bullish momentum.
Price Levels to Watch
Technically, Ethereum faces immediate resistance near the $4,630 level. If bulls manage to push past this barrier, the next resistance levels lie at $4,720 and $4,840.
On the downside, ETH has shown strong resilience around $4,500, which now acts as a critical support level. Analysts suggest that as long as Ethereum holds above this zone, the path toward higher levels—including Kendrick’s ambitious $7,500 year-end target—remains intact.
Institutional Adoption Accelerating
Ethereum’s resurgence isn’t just about short-term price movements—it’s about growing adoption across traditional finance.
Spot ETH ETFs have brought in billions in inflows since launch, creating new pipelines for institutional capital. Meanwhile, corporate treasuries are increasingly exploring Ethereum not only as a store of value but also as a yield-generating asset thanks to staking.
This adoption wave is being likened to Bitcoin’s institutional breakout in 2020–2021, when large firms like Tesla and Square made headline-grabbing BTC purchases. Kendrick believes ETH is at a similar inflection point, with treasuries and ETFs paving the way for broader integration into mainstream financial markets.
Outlook: $7,500 ETH Still in Play
Despite the volatility, Kendrick’s conviction remains unshaken. With Ethereum showing strong fundamentals, growing treasury adoption, and tight supply dynamics, he sees the recent correction as temporary.
“The recent two-day sell-off is a great entry point,” Kendrick reiterated, emphasizing that Ethereum’s true value has yet to be fully realized. His $7,500 target by year-end represents a 68% upside from current levels, signaling significant growth potential in the months ahead.
Conclusion
Ethereum’s journey in 2025 underscores its dual role as both a technological platform and a financial asset. Standard Chartered’s bullish outlook highlights how institutional adoption, treasury demand, and ETF inflows are reshaping ETH’s value proposition.
While short-term volatility may persist, the long-term trajectory points to stronger integration into the global financial system. For investors and institutions alike, the message from Standard Chartered is clear: at current levels, Ethereum still looks “cheap.”
