Standard Chartered Slashes Its Ethereum Target by 47% – But Keeps a $40,000 Long-Term Call

Standard Chartered, one of the few major traditional banks to consistently publish detailed crypto price targets, just made a significant revision. The bank's head of crypto research Geoff Kendrick cut the 2026 year-end target for Ethereum from $7,600 to $4,000 – a 47% reduction. At the same time, the bank maintained its long-term target of $40,000, which would represent more than 2,200% upside from current levels near $1,735.

The cut was driven by the brutal market conditions of the past week. Ethereum fell below $1,800 on June 4 for the first time in over a year. At its intraday low of $1,715, ETH was trading at levels last seen in April 2025. The second-largest cryptocurrency by market cap had lost around 14% in a single 24-hour period.

The ETH/BTC ratio – which tracks Ethereum's performance relative to Bitcoin – has been in a sustained downtrend throughout 2026. While Bitcoin benefited from the launch of spot ETFs and institutional treasury adoption by companies like Strategy and SpaceX, Ethereum has not had an equivalent catalyst. The long-awaited Ethereum spot ETF has seen significantly lower inflows than Bitcoin's equivalent products.

One structural reason is that Ethereum faces a more complex competitive landscape than Bitcoin. Layer-2 networks like Arbitrum and Base have reduced transaction fees on Ethereum itself, which has compressed the revenue that accrues to ETH stakers. Kendrick acknowledged this in his revised note, writing that the near-term headwinds for ETH are more significant than he previously modeled.

Despite the target cut, Standard Chartered's long-term thesis on Ethereum remains intact. Kendrick's $40,000 long-term target is based on Ethereum becoming the settlement layer for tokenized real-world assets – a market he estimates could grow to tens of trillions of dollars. CME Group has also recently launched 24/7 trading for Ethereum futures and options, which removes the weekend gap and deepens institutional access.

BitMine, a crypto treasury company, announced plans this week for a $300 million preferred stock sale specifically to build an ETH treasury position – applying the same model that Strategy used with Bitcoin. If other companies follow, it could provide sustained buying pressure for ETH. If you are considering adding Ethereum to your portfolio, understanding how to store it safely is essential – our guide to the best crypto wallets is a good starting point.