- Network activity remains the main driver of ETH's valuation, but growth is primarily driven by L2 activity, where the value of Ethereum's base layer is questionable.
- The bank believes that only 30% of L2 activity is reflected in the ETH price.
- Tokenization, stablecoins, and ETF inflows could support Ethereum.
- ETF inflows are smaller than BTC's, but more effective per dollar. However, they are limited due to ETH's lower market capitalization and recognition.
Bullish scenario: $6,400 by year-end. Base scenario: $4,300 by year-end. Bearish scenario: $2,200 by year-end.
We will most likely see the asset break above $5,000 and attempt to reach $6,000.
