Standard Chartered, a well-known global financial group, has significantly increased its price targets on Ethereum. By the end of the year, it now aims for $7,500 (up from $4,000 previously) and for 2028, it aims for $25,000 (up from $7,500 previously). A sudden change, but it is not the most useful information for investors.
In the presence of such important updates, it is indeed time to talk about how forecasts work (in the crypto world or even in stocks), how we can use them best, and how not to be too influenced. Whether it's Standard Chartered or any other financial group.
Standard Chartered now believes much more in Ethereum.
It's not the only one to have changed its mind. Objectively, the movements of recent days have caught everyone or almost everyone by surprise.
So much so that it prompted Standard Chartered to significantly revise its forecasts on Ethereum.
These are enormous changes, which in the first case double the target (when there are only 4 months left in the year), in the second case triple them. Have the fundamentals changed? No, because nothing has happened in recent days that would suggest such sudden changes. My suspicion is that such analyses have been influenced by the price.
Mentioning huge numbers attracts clicks.
It makes reading the analysis more important. No one would click on a headline like *Ethereum at $5,000 by the end of the year. If you ended up on this article, you probably clicked because of the ENORMOUS number in the title.
We are not fooling you. This is how it works. And the big managers, analysts, and funds know it.
Price forecasts cannot be precise.
The numbers should be considered as a guideline. It can be useful to take into account the distance between the current price and the target, also to evaluate how much room for growth an asset would have according to a certain manager. The fact that no analyst arrives at the same price targets says a lot about how forecasting is not an exact science.
The price dominates the reasoning.
It may be hard to say, but even those working at prestigious institutions like Standard Chartered end up being influenced by the price. A proper analysis takes into account the possible fluctuations that a cryptocurrency like Ethereum can exhibit. When targets are changed every few days, it's a sign that there was very little solid behind certain analyses.
Are forecasts useless?
My invitation to you is to take them for what they are. In some cases, a way to capture attention, in others, numbers stated freely certain that no one will come back to ask us about them.
