Goldman Sachs predicts Ethereum could hit $ 8,000 this year – Altcoins Bitcoin News

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Global investment bank Goldman Sachs reportedly predicted the price of ether could reach $ 8,000 by the end of the year. Analysts at the bank explained that cryptocurrencies have been trading in line with breakeven inflation since 2019.

Ether could hit $ 8,000 by year end, says Goldman Sachs

Goldman Sachs reportedly explained in a research note released by Global Markets Bank CEO Bernhard Rzymelka that the price of ether (ETH) could reach $ 8,000 by the end of the year. The note details that cryptocurrencies have traded in line with breakeven inflation rates since 2019, according to Zerohedge.

Referring to a chart showing the Bloomberg Galaxy Crypto Index (red) on a logarithmic axis and the 2-year USD forward inflation swap (blue), Goldman analysts noted that “the local environment looks favorable to Ethereum “.

Analysts added: “It has followed inflation markets particularly closely, likely reflecting the pro-cyclical nature as a ‘network-based’ asset. And the latest spike in break-even inflation points suggests an upside risk if the main relationship of recent episodes were to hold (gray circles). They further underlined:

This matches the Ethereum chart well.

Goldman’s memo further describes: “The market began to press against all-time high with a narrowing wedge: either a sign of exhaustion and peak … or the starting point of an accelerating recovery. after a breakout to the upside. ” The analyst also noted that “the RSI has yet to reach the overbought levels seen at previous market highs.”

If the historic correlation with forward inflation persists, the price of ethereum could climb to as high as $ 8,000 over the next two months, according to the publication.

Goldman’s ETH price prediction is higher than a recent prediction from Finder.com’s panel of 50 fintech specialists. The price comparison portal updated the panel’s Ethereum price prediction last week, showing its experts expect ETH to hit $ 5,114 by the end of the year, $ 15,364 by 2025 and $ 50,788 by 2030.

ETH is priced at $ 4,324.98 and its market cap is $ 511.16 billion at the time of writing, based on data from Bitcoin.com Markets. Ether hit an all-time high on October 28. It has climbed 5.5% in the last seven days and 30.7% in the last 30 days.

The global investment bank officially created a crypto trading team in May and launched bitcoin derivatives trading that same month. In June, the bank’s head of digital assets, Mathew McDermott, revealed that Goldman Sachs plans to offer ETH futures and options in the coming months.

In July, analysts at the bank said the Ether looked “like the cryptocurrency with the highest actual use potential because Ethereum, the platform on which it is the native digital currency , is the most popular development platform for smart contract applications “.

What do you think of Goldman Sachs’ prediction? Let us know in the comments section below.

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