Geoffrey Kendrick, Standard Chartered Bank's global head of digital asset research, believes that Ethereum (ETH) and related corporate bonds remain undervalued despite recent inflows.
In emailed comments on Tuesday, he called the recent two-day sell-off "an excellent entry point" for investors. He reiterated his bullish outlook for Ethereum and projected a price target of $7,500 by year-end, a 68% gain from current levels.
He called ETH and ETH fund managers "cheap" at current levels and reiterated his recent prediction that fund managers could eventually hold 10% of all circulating ETH.
Researchers indicate that Ethereum digital asset treasuries (DATs) have purchased 2.6% of all circulating ETH since June. Meanwhile, spot ETH exchange-traded funds (ETFs) have absorbed 4.9% of circulating ETH during the same period.
This helped propel ETH to a new all-time high of $4,955 on August 24. ETH's plunge hasn't impacted Kendrick's $7,500 price target.
Ethereum plummeted 5% on Tuesday before recovering somewhat on Wednesday. Over the past 24 hours, the token has risen 4.4% to $4,624.34, outperforming Bitcoin and the broader cryptocurrency market.
The token's plunge from its all-time high hasn't impacted Kendrick's $7,500 price target for the year. He believes the recent sell-off below $4,500 provides an entry point for investors to buy on the dip.
Furthermore, he highlighted that ETH funds like SharpLink Gaming and Bitmine Immersion are trading at valuations below Saylor's strategy's net asset value (NAV) multiples. He wrote, "Given that ETH fund managers are able to earn a 3% staking yield on ETH, I see no reason for the NAV multiple to be lower than MSTR's."
Furthermore, he noted that SharpLink Gaming's Friday announcement that it would repurchase shares if its mNAV falls below 1.0 creates a "hard floor" for the valuation.
Ether Price Rebounds to Correct Losses
According to CoinMarketCap, Ether surged 10.28% over the past week, hovering above $4,609 at press time.
Key drivers include a historic short squeeze, whale accumulation, and bullish technicals above key resistance.
Furthermore, centralized exchanges (CEXs) saw a net outflow of 74,500 ETH ($344 million) over a 24-hour period, led by Binance. Declining exchange liquidity is creating a supply crunch, while ETH ETFs and staking activity are creating structural demand.
On the upside, prices will face resistance around $4,630. A break above the $4,720 resistance could push it towards the $4,840 resistance.
