In a research note released by Goldman Sachs through its managing director of Global Markets, Bernhard Rzymelka, the global investment bank reportedly predicted that the price of ether (ETH) could rise to $8,000 by year-end.
The research note explains that, according to Zerohedge, cryptocurrencies have traded consistently with inflation breakevens since 2019.
Its analysts referenced a chart that showed Bloomberg Galaxy Crypto Index on a log axis, and the USD 2-year forward 2-year inflation swap, noting that it looked supportive for ethereum.
The analysts also added: “It has tracked inflation markets particularly closely, likely reflecting the pro-cyclical nature as ‘network based’ asset. And the latest spike in inflation breakevens suggests upside risk if the leading relationship of recent episodes was to hold (grey circles).”
The Goldman note further adds: “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.”
Goldman’s analysts also noted that its Relative Strength Index (RSI) has not reached overbought levels that were witnessed in past market highs.
According to the publication, the price of ethereum could surge as high as $8,000 in the next two months if there is a continued historical correlation with inflation forwards.
When compared with the recent prediction by a panel of 50 fintech specialists from the price comparison portal, Finder.com, the ETH price forecast by Goldman is higher.
Finder.com had updated the ethereum price prediction of its panel last week, indicating a $5,114 increase in the price of ETH by year-end, $15,364 by 2025, and $50,788 by 2030, according to its experts.
As at the time of writing this piece, the price of ETH is reported to be at $4,324.98, with a market cap of $511.16 billion, according to data from Bitcoin.com Markets.
It reached an all-time high on October 28 and has moved up by 5.5% in the past 7 days and 30.7% in the past 30 days.
Goldman Sachs had established a crypto trading team and launched its bitcoin derivatives trading in May.
In June, the global investment bank, through its head of digital assets, Mathew McDermott, revealed its plans to enable ETH for its futures and options trading offering in the coming months.
The bank’s analysts had said in July that Ethereum is the most popular development platform for smart contract applications and had real use potential.
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