Standard Chartered has raised its Ethereum price predictions. Now, they expect the price to be US$7,500 by the end of 2025, up from US$4,000, and US$25,000 by 2028, which is an increase from US$7,500. This change comes from stronger industry conditions and increasing demand from corporate treasuries. There’s also growing interest in staking, decentralized finance (DeFi), and infrastructure projects. In March, the bank had lowered its 2025 target due to worries about Layer 2 fee issues and decreasing on-chain activity. However, since June, corporate treasuries have started to buy more Ethereum, possibly accounting for up to 10% of the supply, similar to how Bitcoin was adopted by companies in its early days. The bank believes that long-term holders and treasury managers will significantly affect Ethereum’s price. Factors like locked-up supply, staking yields, and Ethereum’s roles as both a settlement layer and a foundation for Layer 2 solutions are expected to boost demand. Despite some risks from regulations, competing platforms, and ongoing protocol changes, the bank’s new forecast shows increased confidence in Ethereum’s medium- to long-term future. The updated prediction of $7,500 for the end of 2025 suggests a renewed, strong positive outlook for Ethereum. This optimistic view is likely to influence short-term market behavior, making strategies that bet on price increases more appealing. Derivative traders might consider buying call options or starting long futures contracts for September and October expiries to position for potential gains. Support for this optimism comes from on-chain data indicating that institutional interest is rising, which counters earlier concerns. The open interest in ETH futures on the CME has jumped by 20% in the last month, reaching a new high of $12 billion. This shows that substantial funds are betting on a price increase before the year ends. Concerns about declining on-chain activity from earlier this year are fading, as daily active addresses have consistently risen above 800,000. Recent data shows that over 35% of the total ETH supply is now locked in staking, leading to tighter availability on exchanges. This reduced liquidity could cause price increases if buying pressure rises. We can expect implied volatility in the options market to rise after such a significant forecast change. This makes selling out-of-the-money puts an attractive strategy for gaining premium since it benefits from rising prices and time decay. It reflects a moderately bullish outlook while taking advantage of heightened market expectations. This situation is reminiscent of Bitcoin’s performance in late 2020 when news of corporate treasury adoption led to a substantial multi-month rally. The current predictions of corporate ETH accumulation follow a similar pattern, adding credibility to the forecast. Traders should see this moment as a potential entry point prior to a broader market price adjustment. For those managing risk, bull call spreads are a good option for gaining long exposure with limited maximum loss. This strategy allows participation in a possible rally while protecting against sudden downward shifts. It’s a more cautious way to position for the upward movement expected in the coming weeks.

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