Geoffrey Kendrick reiterated his recent prediction that fund companies could eventually hold 10% of circulating ETH.

Geoffrey Kendrick, global head of digital asset research at Standard Chartered Bank, believes that despite recent inflows, Ethereum (ETH) and related corporate bonds are still undervalued.

On Tuesday, he remarked in an email comment that the recent sell-off over the past two days is 'an excellent entry point' for investors. He reiterated his bullish outlook on Ethereum, stating it will reach a target price of $7,500 by the end of the year, a 68% increase from current levels.

He called ETH and ETH fund management companies 'cheap' at current levels and reiterated his recent prediction that fund management companies could eventually hold 10% of circulating ETH.

Researchers stated that since June, the Ethereum Digital Asset Trust (DAT) has purchased 2.6% of all circulating Ether. Meanwhile, spot ETH exchange-traded funds (ETFs) have absorbed 4.9% of circulating Ether during the same period.

This drove ETH to a historic high of $4,955 on August 24.

The drop in ETH did not affect Kendrick's $7,500 target.

Ethereum plummeted 5% on Tuesday but rebounded on Wednesday. In the past 24 hours, the token has risen 4.4% to $4,624.34, outperforming Bitcoin and the overall cryptocurrency market.

The token has plummeted from its all-time highs, but this has not affected Kendrick's $7,500 target for this year. He believes the recent sell-off below $4,500 is an entry point for investors to buy the dip.

Additionally, he emphasized that the valuations of ETH fund companies like SharpLink Gaming and Bitmine Immersion have fallen below the net asset value (NAV) multiple of Saylor's strategy.

He wrote: 'Given that ETH fund management companies can earn a 3% yield on ETH, I see no reason for the net asset value multiple to be lower than MSTR's multiple.'

Furthermore, he pointed out that SharpLink Gaming announced on Friday that it would buy back shares if its mNAV falls below 1.0, creating a 'hard bottom' for valuations.

Ethereum price rebounds to correct losses.

According to data from CoinMarketCap, Ethereum has surged 10.28% in the past week, hovering above $4,609 at the time of writing.

Key drivers include historic short squeezes, whale accumulation, and bullish technicals breaking through key resistance.

Additionally, centralized exchanges (CEX) saw a net outflow of 74,500 ETH ($344 million) in 24 hours, with Binance leading the way. The reduction in exchange liquidity has led to supply tightness, while ETH ETFs and staking activities have created structural demand.

On the upside, prices will face resistance around $4,630. If the resistance level of $4,720 is broken, it may push up to the resistance level of $4,840.