Goldman Sachs Prediction: Ethereum May Go Up To $8,000 by Year-End

2021-11-02 17:41:50
Finishing The Year Strong

Goldman Sachs makes a prediction that ethereum could reach up to $8.000 by the year-end. This comes after analysts from the global investor came to a conclusion that crypto assets usually have a tendency to trade in line with inflation. At least since 2019.

The research conducted by Goldman Sachs is explained by the managing director of the company, Bernhard Rzymelka. According to the circulated note, the price of ethereum could easily reach $8.000 by 2022.

Looking at the 2 year history of crypto assets and inflation, Goldman Sachs claims that ‘the local backdrop looks supportive for ethereum’. Moreover, the analyst said:

It has tracked inflation markets particularly closely, likely reflecting the pro-cyclical nature as ‘network based’ asset. And the latest spike in inflation break evens suggests upside risk if the leading relationship of recent episodes was to hold (grey circles).Goldman Sachs | Analysis Note

Additionally, the analyst from Goldman Sachs recognizes that the market might be at a breaking point when it comes to reaching its peak:

The market has started to press against the all-time high with a narrowing wedge: Either a sign of exhaustion and peaking … or a starting point of an accelerating rally upon a break higher. The RSI has yet to hit the overbought levels seen in past market highs.Goldman Sachs | Analysis Note

Whatever the case, should this historic connection continue in the future and ethereum reaches $8.000 until January 2022, then Goldman Sachs prediction comes true.

Second Opinion

However, it seems like Finder.com and its 50 fintech experts have somewhat lower expectations when it comes to the future of ETHER. In particular, the experts from Finder predict that ethereum will reach $5.114 by the end of the year. Moreover, they predict $15.364 by 2025 and $50.788 in 2030.

Right now, the price of ethereum is $4.324, with a market cap at the time of writing of $511.16 billion. Ethereum recorded a record price on 28th of October, and since then it notices a exponential increase. Specifically, it jumped 5.5% in just one week, and a whopping 30.7% in just 30 days.

Goldman Sachs already made adjustments in order to get on board the crypto train. In fact, back in May the bank created a crypto team for trading. Consequently, during the same month the bank started with bitcoin derivatives trading.

Just a couple of months later in June, the bank revealed that it plans to offer ethereum based futures and options trading. Consequently, making a prediction that ethereum will hit $8.000 by the year-end.

Something that definitely needs attention, especially since the analysis are showing this to be a trend, rather than a mere prediction.

 

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