Ethereum Could Surge to $7,500 and Leave Bitcoin Behind, Banking Giant Says

Standard Chartered analyst Geoff Kendrick has set a new price target of $7,500 for Ethereum by the end of 2026, suggesting the asset could outperform Bitcoin during the year. This prediction comes amid improving fundamentals for Ethereum, including strong network effects and growing adoption of real-world assets on the platform according to analysis.

The analyst highlighted Ethereum's dominance in stablecoins, tokenized real-world assets, and decentralized finance as key long-term growth drivers. These sectors are expected to benefit from Ethereum's planned upgrades, which aim to increase layer-one throughput by 10 times over the next few years as reported.

Kendrick also noted the potential impact of the U.S. CLARITY Act, which could establish a clearer regulatory framework for digital assets. If passed, this legislation could unlock new phases of decentralized finance and support broader market growth according to analysts.

Why Is Ethereum Seen as a Stronger Bet in 2026?

Ethereum has shown signs of regaining market share from Bitcoin. The ETH/BTC ratio has risen 3.59% year-to-date, suggesting a shift in investor interest toward Ethereum according to market data. Analysts attribute this to a combination of factors, including reduced Bitcoin dominance and increased demand for higher-risk exposure within the Ethereum ecosystem as reported.

On-chain activity has also supported Ethereum's improved performance. Transaction counts on the network have grown 6.8% in 2026 and spiked 31% since mid-December according to data. This increase in adoption signals growing confidence in Ethereum's utility and scalability as analysis shows.

What Are the Risks and Market Dynamics to Watch?

Despite the optimism, Ethereum faces several challenges. The price is currently trading below major moving averages and is testing resistance levels around $3,150–$3,447 according to technical analysis. A decisive close above $3,150 would signal a bullish breakout, while a failure to break could lead to a correction toward the $2,600–$2,700 range as indicated.

Market conditions also remain volatile. Bitcoin and Ethereum ETFs have lost nearly all 2026 inflows since January, raising concerns about investor sentiment according to reports. Additionally, the broader market is sensitive to macroeconomic shocks and regulatory decisions that could affect validator economics or institutional appetite as analysis shows.

What Do Analysts Expect for 2026 and Beyond?

Kendrick has raised Ethereum's long-term price target to $40,000 by the end of 2030, with intermediate targets of $15,000 by 2027 and $22,000 by 2028 according to projections. These projections are based on the continued success of Ethereum's scaling upgrades and the potential for regulatory clarity in the U.S. as stated.

Bitcoin, on the other hand, is expected to rise to $150,000 in 2026 and reach $500,000 by 2030. However, the focus has shifted to Ethereum, which is seen as having stronger growth potential in the context of altcoin adoption and decentralized innovation according to analysis.

How Are Market Participants Reacting to These Projections?

Investor sentiment is mixed. Prediction markets on Myriad assign only a 19% chance of an altcoin rally before April 2026, indicating some skepticism about the near-term prospects for Ethereum according to data. However, continued accumulation by BitMine and other major players is seen as a positive signal as reported.

Institutional interest in Ethereum is also on the rise. BitMine Immersion Technologies has increased its Ethereum treasury holdings to over 4.16 million ETH, valued at $13 billion according to reports. This move is seen as a vote of confidence in Ethereum's long-term value as analysis shows.

What Broader Implications Could This Have for the Crypto Market?

The potential outperformance of Ethereum could signal a shift in the crypto market's structure. If Ethereum continues to gain traction in decentralized finance and stablecoins, it could attract more institutional capital and investor attention according to analysts. This could lead to a broader diversification of the digital asset market and reduce Bitcoin's dominance as the sole benchmark for crypto performance as reported.

At the same time, the development of regulated stablecoins and crypto infrastructure is gaining momentum. Companies like Bakkt and World Liberty Financial are expanding their offerings in the space, with Bakkt recently acquiring DTR to strengthen its stablecoin settlement capabilities according to reports.

World Liberty Financial, linked to U.S. President Donald Trump, has also launched a crypto lending platform, expanding the utility of its USD1 stablecoin according to news. These developments suggest that the regulatory and institutional environment for crypto is evolving rapidly, with Ethereum poised to benefit from these changes as analysis shows.