Ethereum and Ethereum Reserve are undervalued compared to their actual potential.
Standard Chartered notes that the buying of Ethereum alongside ETFs is increasing sharply, creating significant opportunities for long-term price appreciation. Ethereum's price is expected to recover strongly soon, providing attractive buying points when prices drop significantly.
MAIN CONTENT
Ethereum Reserve has been holding 2.6% of the circulating Ethereum supply since early June.
Combining ETF cash flows, the total buying reached nearly 4.9% of the circulating Ethereum supply.
Forecasts suggest Ethereum could reach $7,500 by the end of the year, making it attractive when prices drop below $4,500.
How much % of the Ethereum supply has Ethereum Reserve purchased?
Expert Geoff Kendrick from Standard Chartered Bank stated that since the beginning of June, Ethereum Reserve has accumulated 2.6% of the circulating Ethereum supply in the market. When combined with the investment money from Ethereum ETFs during the same period, the total purchase rate reached 4.9%.
This accumulation scale reflects the appeal and confidence of large institutions in Ethereum as a potential asset. Elliott positions itself to have a significant influence by holding nearly 5% of the total circulation, increasing liquidity and market stability.
What is Ethereum Reserve's goal regarding its Ethereum holdings in the future?
Kendrick predicts that Ethereum Reserve will continue to expand to reach approximately 10% of the total circulating Ethereum supply. This is an ambitious but feasible goal based on current accumulation trends and increasing interest from institutional investors.
Achieving a 10% holding ratio would help Ethereum Reserve become one of the major shareholders, contributing to price stabilization and increasing market influence. This move also indicates a long-term plan to harness Ethereum's growth potential.
How is Ethereum's price forecasted in light of upcoming market volatility?
Although the price of Ethereum has just undergone a sharp decline, Kendrick remains optimistic, with a target price of $7,500 by the end of the year. He views prices below $4,500 as an attractive buying opportunity for long-term investors.
These statements are based on an analysis of network value, intrinsic value, and the financial situation of Ethereum Reserve. The current accumulation of cash flows and the price protection mechanism from repurchase activities by institutions like SBET reinforce confidence in sustainable growth in the medium term.
"The value of Ethereum Reserve is returning to a reasonable level as many related sectors like Sharplink Gaming and Bitmine Immersion have decreased. SBET's commitment to repurchasing shares if the NAV ratio drops below 1.0 creates a price floor for volatility."
- Geoff Kendrick, Head of Global Digital Asset Research, Standard Chartered, August 2023
Frequently Asked Questions
What is Ethereum Reserve and what role does it play in the Ethereum market?
Ethereum Reserve is an organization that accumulates and manages a large amount of Ethereum to create stability and promote long-term value for the Ethereum network.
What does the current holding rate of Ethereum Reserve signify?
Holding 2.6% of circulating Ethereum indicates a significant influence and strong belief in the asset's potential for price appreciation.
What is the basis for the $7,500 Ethereum price forecast?
The forecast is based on an analysis of institutional cash flows, the intrinsic value of assets, and the technological development of Ethereum.
Is it the right time to buy Ethereum when the price drops below $4,500?
Experts believe this is an attractive buying opportunity, aligning with long-term investment strategies.
How does SBET influence the Ethereum Reserve exchange rate?
The commitment to repurchase when NAV is low creates a price floor, mitigating risk and supporting market stability.
Source: https://tintucbitcoin.com/standard-chartered-ethereum-va-reserve-dinh-gia-thap/
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