Investment bank Standard Chartered (STAN) had this to say about Ethereum: Ethereum$3,113.37 Positioned to outperform Bitcoin BTC$91,150.26 This despite the weaker-than-expected performance of digital assets overall this cycle.
Bitcoin’s weak performance weighs on the overall crypto market, but Ether’s relative outlook has improved, with the bank Ethereum–BTC Over time, this ratio will rise towards the 2021 high.
Still, Standard Chartered has revised down its forecast for Ether from 2026 to 2028, reflecting continued weakness related to Bitcoin’s performance. At the same time, the company raised its long-term outlook, predicting that Ether will reach $40,000 by the end of 2030 as the cryptocurrency’s structural advantages play out.
The second-largest cryptocurrency in the term was trading at around $3,100 at the time of publication.
“The passage of the US CLARITY Act, which creates a regulatory framework for digital assets, will Ethereumif it unlocks the next step for DeFi,” Jeff Kendrick, head of digital asset research at Standard Chartered, wrote in a report on Monday, referring to the House of Commons market structure bill. The U.S. Senate is working on its own version of the bill, and key committees have scheduled hearings to vote on the bill later this week.
Bitcoin has ranged between $90,000 and $93,000 in recent days, bouncing back from a slow end to 2025 and reacting to macroeconomic catalysts such as U.S. inflation and jobs data, with traders showing caution ahead of key indicators that could impact liquidity and risk appetite.
While Ether has been slowly following Bitcoin’s rise, certain altcoins like XRP have outperformed with double-digit gains. Despite the short-term volatility, the market capitalization of cryptocurrencies still exceeds approximately $3 trillion, underscoring the persistence of investor interest amid widespread macro and regulatory uncertainty.
Kendrick said that while slowing inflows of crypto exchange traded funds (ETFs) and digital assets into corporate bonds have weighed on the sector as a whole, ether is benefiting from continued buying by Bitmine Immersion (BMNR), the largest ethereum-focused corporate bond firm.
The bank also highlighted its bullish stance on stablecoins, real-world assets, and the decentralized finance space, where Ethereum remains the dominant platform.
Progress in scaling Ethereum’s base layer is also a tailwind. The bank said its analysis shows that improved transaction throughput has historically led to increased market capitalization, and it believes the network’s plans to increase layer 1 capacity by about 10 times are gaining momentum.
On the regulatory side, Kendrick said the passage of the proposed US Market Structure Act could open up the next stage of decentralized finance (DeFi) growth and further support Ethereum.
The bank expects the bill to move forward in the first quarter, and said that with a clearer regulatory framework and a resilient U.S. stock market, Bitcoin could reach new highs in the first half of this year.
read more: Standard Chartered gives up on bullish Bitcoin predictions
