Global investment bank Goldman Sachs is reportedly predicting that the price of ETH could rise to $8,000 by the end of this year.
Ethereum achieved a new all-time high (ATH) today touching $4,519.69 on the Binance cryptocurrency exchange.
Goldman Sachs has reportedly explained in a research note distributed by the bank’s managing director of Global Markets, Bernhard Rzymelka, that the price of Ethereum could hit $ 8,000 by the end of the year. The note details that cryptocurrencies have traded in line with inflation limits since 2019.
Referring to a graph showing the Bloomberg Galaxy Crypto Index (red) on a logarithmic axis and the 2-year inflation swap (blue), Goldman analysts noted that “the local context appears to be supportive for Ethereum.”
The United States is experiencing the highest inflation since the 1970s.
The analysts added: “It has followed inflation markets particularly closely, probably reflecting the pro-cyclical nature as a ‘network-based’ asset. And the latest rebound in inflation breakevens suggests an upside risk if the main ratio of recent episodes is maintained (gray circles)”. In addition, they noted:
This lines up well with the ethereum chart.
“The market has started to press against the all-time high with a narrowing gap: either a sign of exhaustion and a spike… or a starting point for an accelerated rally after a bullish breakout.” The analyst also pointed out that “the RSI has yet to reach the overbought levels seen in the highs of the past market”Goldman Sachs
If the historical correlation with inflation futures persists, the price of ethereum could rise as high as 8,000 in the next two months, the publication indicates.