The second-largest cryptocurrency by market capitalization and the companies holding it are undervalued, according to Jeffrey Kendrick, head of digital asset research at Standard Chartered, as reported by The Block.
Since June, corporate treasuries and spot Ethereum ETFs have absorbed 4.9% of the total coin supply. This has pushed the crypto asset towards reaching its all-time high of $4955.
However, valuations of companies like SharpLink Gaming and BitMine Immersion have fallen below the Strategy’s NAV multiplier.
“Given that firms with Ethereum reserves can earn a 3% yield from staking, I see no reason why their NAV multipliers should be lower than MSTR (which does not earn such income),” Kendrick stated.
Last week, SharpLink even announced that if its net asset value falls below a 1:1 ratio, the company will start buying back its shares. This would create a “floor” below which the price will not fall.
The Standard Chartered analyst maintains a price forecast for Ether at $7,500 by the end of 2025 and $25,000 by 2028. He described the recent correction as an “excellent entry point.”
Traders are also optimistic: on the prediction platform Myriad, they estimate the probability of reaching $5000 in the next four months at about 74%.
As noted by Decrypt, technical indicators also support a positive outlook:
Key support levels are currently at $4000 and $3500, with resistance around $4800.
However, historical data points to risks of a decline. Typically, Ethereum’s price decreases by an average of 6.42% in September. If the cryptocurrency holds current levels, the traditionally “green” October could act as a catalyst for a move to $5000.
Crypto trader known as Axel Bitblaze highlighted that Ether’s price broke a “four-year bullish megaphone.” According to him, the current market structure points to a move towards $6800-7000.
Crypto investor under the pseudonym Jelle believes the next target is $10,000.
In the last 24 hours, Ethereum has risen by 3.3%, and over the week, by 7.9%. At the time of writing, the asset is trading at $4565.
