Standard Chartered Predicts Ethereum to Outperform in 2026, Targeting $7500 by Year-End

Standard Chartered has issued a bullish outlook for Ethereum, forecasting the cryptocurrency to outperform its peers in 2026. The bank's Global Head of Digital Assets Research, Geoffrey Kendrick, stated that Ethereum could significantly outperform the broader market amid improving fundamentals. Despite a downward revision of absolute price targets due to a weak crypto market, the bank remains optimistic about Ethereum's long-term trajectory. Standard Chartered now expects Ethereum to end 2026 at $7,500, down from a previous forecast of $12,000.

The bank attributes Ethereum's potential for outperformance to its dominance in stablecoins, tokenized real-world assets, and decentralized finance. These factors, combined with ongoing network scalability efforts, are expected to drive Ethereum's relative strength against Bitcoin. Standard Chartered noted that Ethereum's growing adoption in blockchain and on-chain products will further support its performance.

The bank also highlighted Ethereum's structural advantages, including its leading role in stablecoins and DeFi, as reasons for its outperformance. These advantages are expected to drive the ETH-BTC ratio back toward its 2021 highs. Despite lower inflows into digital asset ETFs and corporate treasury vehicles, Ethereum remains more resilient than Bitcoin.

Why Did This Happen?

Standard Chartered's bullish stance comes as Bitcoin's performance has weakened, affecting the overall digital asset market. The bank emphasized that Ethereum's drivers are strengthening relative to Bitcoin, pointing to Ethereum's dominance in stablecoins and tokenized real-world assets. The bank cited BitMine Immersion as a key buyer of Ethereum, with the company currently holding about 3.4% of ether in circulation and aiming to reach 5%.

The report also noted that Ethereum's transaction count has reached all-time highs, driven largely by stablecoin activity. This increase in throughput is seen as a positive indicator for Ethereum's market capitalization. Standard Chartered reiterated its bullish view on stablecoins and tokenized assets, forecasting both markets to reach $2 trillion by 2028, with most activity expected to settle on Ethereum.

What Are Analysts Watching Next?

Standard Chartered expects Ethereum's network upgrades, including the December Fusaka upgrade, to be critical for long-term growth. Higher throughput has historically translated into higher market capitalization, supporting the case for Ethereum's outperformance. The bank also noted that a more supportive regulatory environment could further bolster Ethereum's prospects. The proposed U.S. Clarity Act, expected to pass in the first quarter, could provide additional regulatory clarity for digital assets.

The bank's outlook contrasts with Bitcoin's weaker performance, as it lowered its ETH price targets for the next few years. However, Standard Chartered raised its long-term forecasts, projecting Ethereum to reach $30,000 by 2029 and $40,000 by 2030. This divergence in outlook reflects the bank's belief that Ethereum's fundamentals will drive performance in 2026. The bank emphasized that 2026 will be a year where Ethereum's fundamentals, rather than speculative momentum, drive its performance.

Standard Chartered also highlighted the growing institutional interest in Ethereum, with BitMine Immersion's continued buying spree and the potential for additional regulatory clarity. The bank's analysis suggests that Ethereum's structural advantages and network upgrades will continue to support its long-term growth trajectory.

What Are the Market Implications?

The bank's forecast aligns with broader trends in institutional adoption and regulatory developments. The proposed U.S. Clarity Act is seen as a key factor that could unlock additional activity on Ethereum-based protocols. If approved, combined with U.S. stock market resilience, Bitcoin could hit new highs in the first half of 2026, supporting Ethereum's long-term uptrend.

Standard Chartered's bullish stance on Ethereum is further supported by the growing adoption of blockchain technology and the increasing role of digital assets in traditional financial systems. The bank's analysis suggests that Ethereum's network fundamentals, including higher throughput and transaction volumes, will continue to drive its performance relative to other cryptocurrencies .

The market's reaction to these developments will be closely watched by investors and analysts. Standard Chartered's report provides a detailed analysis of Ethereum's potential for outperformance in 2026, highlighting the key factors that could influence its trajectory . The bank's revised price targets reflect a more cautious approach to the near-term outlook, while maintaining confidence in Ethereum's long-term prospects .

Overall, Standard Chartered's report underscores the importance of Ethereum's structural advantages and network upgrades in driving its performance. The bank's analysis suggests that Ethereum's dominance in stablecoins, tokenized real-world assets, and DeFi will continue to support its outperformance in 2026. As the digital asset market evolves, Ethereum's fundamentals are expected to play a crucial role in shaping its long-term trajectory .