Standard Chartered has increased its Ethereum price forecasts, setting the 2025 year-end target at US$7,500, up from US$4,000, and the 2028 target at US$25,000, previously US$7,500. The revision is based on stronger industry conditions and rising corporate treasury demand, alongside growing institutional interest in staking, DeFi, and infrastructure.
In March, the bank had lowered its 2025 target due to concerns about Layer 2 fee leakage and declining on-chain activity. However, since June, corporate treasuries have started accumulating a large portion of supply, potentially reaching 10%, mirroring Bitcoin’s initial corporate adoption patterns.
The bank anticipates long-term holders and treasury managers will have a larger impact on supporting prices. Factors such as locked-up supply, staking yields, and Ethereum’s role as both a settlement layer and a base for Layer 2 are expected to increase demand. Despite risks from regulation, competing platforms, and protocol developments, the bank’s forecast indicates a restored confidence in Ethereum’s medium- to long-term prospects.
The updated forecast to $7,500 for the end of this year, 2025, suggests a renewed and strong bullish sentiment for Ethereum. We should anticipate this positive outlook to influence short-term market dynamics, making long-biased strategies more attractive. Derivative traders may consider positioning for upside by purchasing call options or establishing long futures contracts for the September and October expiries.
This confidence is supported by on-chain data showing that institutional interest is indeed growing, countering the concerns we saw back in March. Open interest in ETH futures on the CME has surged by 20% over the last month, reaching a new high of $12 billion. This indicates that large capital is actively positioning for a price increase before the year’s end.
The concern about slowing on-chain activity from earlier this year appears to be subsiding, as daily active addresses have consistently climbed back above 800,000. With recent data showing over 35% of the total ETH supply is now locked in staking protocols, the available supply on exchanges is tightening. This shrinking liquidity could amplify upward price movements on any significant buying pressure.
We can expect a rise in implied volatility in the options market following such a sharp forecast revision. This makes selling out-of-the-money puts an appealing strategy for collecting premium, as it benefits from both a rising price and time decay. This approach reflects a moderately bullish view while taking advantage of the heightened market expectations.
This situation mirrors what we observed with Bitcoin back in late 2020, when news of corporate treasury adoption preceded a major multi-month rally. The current estimates of corporate ETH accumulation are following a similar script, lending credibility to the forecast. Traders should view this period as a potential entry point before a broader market repricing occurs.
For those looking to manage risk, bull call spreads are a viable option to gain long exposure with a defined maximum loss. This strategy allows participation in a potential rally while protecting against sudden reversals. It is a more conservative way to position for the upside anticipated in the coming weeks.
