Ethereum Could Rally $8,000 this Year, According to Goldman Sachs Analysts

Ethereum Could Hit $8,000 By Year End: Goldman Sachs

Financial blog ZeroHedge quoted a note from investment bank Gold Sachs’s managing director for global markets, Bernhard Rzymelka, predicting that the largest altcoin by market cap Ethereum (ETH) could rally by 80% within the next two months.

Rzymelka even added that the recent spike to just under $4,500 could be either a sign of bull run exhaustion or a starting point for a new acceleration where the digital asset could rise as high as $8,000 in the next couple of months.

The note further highlighted that cryptocurrencies have traded in line with inflation break evens since 2019. Referencing a chart showing the Bloomberg Galaxy Crypto Index on a log axis and the USD 2-year forward 2-year inflation swap, Goldman’s analysts noted that “the local backdrop looks supportive for ethereum.”

However, this could go either way, where investors’ views of current inflation pressures may persist and if they do, it could be “a sign of exhaustion and peaking, or a starting point of an accelerating rally upon a break higher,” the note said.

Ethereum Had Its Highest Month Close in History

Ethereum closed last month at $4,287, its highest monthly close of all time. Nearly $3 billion worth of ETH tokens has further been burned since the implementation of EIP-1559. The higher burn is expected to drive ETH deflation and Ethereum prices even higher.

The successful implementation of the Altair Beacon chain upgrade has also taken Ethereum another step closer to the “Merge” where the blockchain network will transition from proof-of-work to proof-of-stake.

In May, Goldman Sachs formally established a crypto trading team and launched bitcoin derivatives trading in the same month. A month later, the bank’s head of digital assets, Mathew McDermott revealed that the investment bank plans to offer futures and options trading in ETH in the coming months.