Standard Chartered’s digital assets research chief, Geoffrey Kendrick, has highlighted Ethereum’s potential for further gains, citing growing institutional demand and decreasing exchange liquidity. According to Kendrick, these factors are tightening the available supply of ETH, supporting his forecast that the cryptocurrency could reach $7,500 by the end of the year.
Reports indicate that corporate digital asset treasury firms have acquired approximately 2.5% of circulating Ether since June. Additionally, spot Ethereum exchange-traded funds (ETFs) have absorbed close to 5% of ETH supply over the same period. Combined, roughly 7.5% of the total supply has moved into corporate treasuries and ETFs in a matter of months, signaling a meaningful shift in market dynamics. Kendrick believes that institutional holdings could eventually reach 10% of all circulating Ether, reinforcing the case for a bullish outlook.
Exchange Outflows Reduce Near-Term Selling Pressure
Tracking tools show significant ETH outflows from exchanges, particularly Binance, where over 74,000 ETH — approximately $340 million at recent prices — was withdrawn in a single day. Such movements often indicate reduced near-term selling pressure, as funds move into custody solutions less likely to be sold immediately.
Despite these outflows, Ethereum experienced a minor pullback of roughly 5% before rebounding. CoinMarketCap reports ETH trading near $4,618, reflecting a 4.6% gain over the past 24 hours and an overall weekly increase of 10%. These movements suggest that institutional accumulation may be helping to stabilize the market, even amid short-term volatility.
Short-Term Resistance Levels
Traders are closely monitoring Ethereum’s price action around key resistance zones. Short-term barriers near $4,600 are critical, with a potential breakthrough possibly opening the path to $4,700 and $4,800 before testing prior highs.
Ethereum briefly reached an all-time high of $4,950 on August 24. Kendrick’s year-end target of $7,500 implies a potential rise of nearly 60% from current levels, contingent on continued strong institutional flows and supportive macroeconomic conditions.
Corporate Holdings Influence Market Perception
Certain firms, such as SharpLink Gaming and Bitmine Immersion, are being evaluated based on their ETH exposure. Kendrick draws parallels to how companies with Bitcoin treasuries have influenced their market valuations. SharpLink, for instance, has revealed a share repurchase program that triggers if its metric net asset value drops below a set threshold, effectively creating a floor for the stock price.
While these corporate actions support equity valuations tied to ETH, they do not remove Ether permanently from circulation in the same manner as staking or ETF custody. Nonetheless, these movements underscore the growing role of institutional participants in shaping market dynamics and sentiment.
Risks and Considerations
The bullish outlook for Ethereum assumes relatively stable macro conditions and continued institutional accumulation. However, macroeconomic shocks, sudden shifts in investor sentiment, or regulatory changes could quickly reverse these trends.
Additionally, crowded positions may develop if multiple market participants target the same price themes, amplifying volatility during market corrections. Traders are advised to remain aware of these dynamics, as large-scale liquidations or sentiment reversals could influence short-term price movements.
Conclusion
Ethereum continues to attract institutional attention, with significant portions of circulating ETH being accumulated by corporate treasuries and ETFs. Reduced exchange liquidity is contributing to tighter supply, supporting a positive medium-term outlook.
Kendrick’s analysis suggests that Ethereum remains undervalued, with potential for substantial gains if current trends persist. While risks remain, the increasing presence of institutional participants may provide a stabilizing effect and shape Ethereum’s trajectory toward the $7,500 target by year-end.
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