Goldman Sachs Forecasts Ethereum to Hit $8,000 in 2021 November 2, 2021 November 2, 2021 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsNovember 2, 2021 by Kelly Cromley

Goldman Sachs Forecasts Ethereum to Hit $8,000 in 2021

According to reports, global investment bank Goldman Sachs predicts that the price of ether will rise to $8,000 by the end of the calendar year. In an explanation provided by the bank’s analysts, cryptocurrencies have traded in lockstep with inflation breakevens since 2019.

Bernhard Rzymelka, the managing director of Global Markets at Goldman Sachs, is said to have explained in a research note circulated by the bank’s managing director of Global Markets, that the price of ether (ETH) could reach $8,000 by the end of the year.

According to Zerohedge, since 2019, cryptocurrencies have traded in line with inflation breakevens, which is detailed in the note. Goldman’s analysts pointed to a chart showing the Bloomberg Galaxy Crypto Index (red) on a log axis and the USD 2-year forward 2-year inflation swap (blue) to conclude that “the local backdrop appears supportive for ethereum.”

“It has tracked inflation markets particularly closely, which is likely a reflection of its pro-cyclical nature as a ‘network based’ asset,” the analysts continued. “Furthermore, the most recent spike in inflation breakevens indicates that there is an upside risk if the leading relationship of recent episodes is maintained (grey circles).”

Furthermore, they stated that “this is consistent with the ethereum chart.”

“The market has begun to press against the all-time high with a narrowing wedge: This could be a sign of exhaustion and peaking… or it could be the beginning of an accelerating rally upon a break higher,” according to the Goldman note. Also, according to the analyst, the “relative strength index (RSI) has not yet reached the overbought levels seen during previous market peaks.”

According to the publication, if the historical correlation between inflation and the price of ethereum continues, the price of ethereum could rise to as high as $8,000 in the next two months. The Goldman Sachs ETH price forecast is higher than a recent prediction by a panel of 50 fintech experts from, which was released earlier this month.

The price comparison portal updated the panel’s ethereum price prediction last week, with its experts predicting that ETH will reach $5,114 by the end of the year, $15,364 by 2025, and $50,788 by 2030, according to the data. According to data from Markets, the price of ETH is $4,324.98 and the cryptocurrency’s market capitalization is $511.16 billion at the time of writing.
On October 28, the cryptocurrency ether reached an all-time high.

It has risen by 5.5 percent in the previous seven days and by 30.7 percent in the last thirty days.

In May, the global investment bank officially formed a cryptocurrency trading division, and in the following month, it began offering bitcoin derivatives trading. Goldman Sachs’ head of digital assets, Mathew McDermott, stated in June that the firm intends to launch futures and options trading in Ethereum in the coming months.

ETH appeared to be “the cryptocurrency with the greatest real-world application potential,” according to analysts at the bank in July. “Ethereum, the platform on which ether is the native digital currency, is the most popular development platform for smart contract applications,” the analysts said.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.