Standard Chartered has raised its end-of-year 2025 price target for Ethereum (ETH) to 7,500 dollars from a previous forecast of 4,000 dollars. The bank's positive outlook is based on record capital inflows into ETF funds, demand for treasury bonds, and the widespread popularity of stablecoins.

In its research, the bank stated that Ether and ETF fund managers have purchased 3.8% of the circulating ETH supply since June 1, nearly double the fastest accumulation rate of Bitcoin recorded during the 2024 U.S. election cycle. This demand shock is a key catalyst for the recent price surge.

ETH ETFs have just recorded an inflow of over 1 billion dollars, the highest since their launch in the U.S., bringing the token's value to just below 4% of its all-time high of 4,891 dollars in November 2021.

ETH ETF | Source: Sosovalue

The price surge comes as network activity increases following the passage of the GENIUS Act in July, establishing a clear regulatory environment in the U.S. for stablecoins.

Standard Chartered estimates that the stablecoin market will grow eightfold, reaching 2 trillion dollars by 2028, with Ethereum, which holds more than half of the total stablecoins issued, accounting for much of that growth. Stablecoins currently support 40% of total blockchain fees, providing steady demand for ETH.

Technical improvements are also being implemented. Ethereum co-founder Vitalik Buterin will increase layer 1 throughput by 10 times to support more high-value on-chain transactions and move lower-value transactions to layer 2 solutions like Arbitrum and Base.

Standard Chartered targets ETH at 7,500 dollars | Source: Standard Chartered

The bank expects the third-largest cryptocurrency to outperform Bitcoin over the next twelve months, with the ETH-BTC exchange rate rising from 0.036 to 0.05 by the end of 2025. The current long-term target is:

  • 7,500 dollars by the end of 2025 (up from 4,000 dollars)

  • 12,000 dollars by the end of 2026 (up from 5,000 dollars)

  • 18,000 dollars by the end of 2027 (up from 6,000 dollars)

  • 25,000 dollars by the end of 2028 (up from 7,500 dollars)

At the time of writing, ETH is trading at around 4,692 dollars, up more than 50% in the past month. $ETH