Is the Ethereum price pullback a rare buy the dip opportunity? Institutional funds continue to flow in, suggesting ETH could rise to $7500 by the end of the year｜US Encryption Morning Report

Despite the recent price fluctuations of Ethereum, institutional funds are quietly reshaping its trend. Standard Chartered has reiterated its year-end target price of $7,500 for ETH, pointing out that institutional inflows have "only just begun." Data shows that since the beginning of June, holdings companies and ETFs for ETH have absorbed nearly 5% of the circulating supply, with a wave of demand pushing ETH to a new all-time high. Analysts believe that the current pullback may have bottomed out, and the dual advantages of staking yields and capital appreciation are attracting Bitcoin whales to shift towards Ethereum.

[Institutional View: Standard Chartered Bank is Bullish, Supply Contraction May Accelerate Price Discovery]

In a recent report by "American Crypto News", Standard Chartered Bank's Head of Digital Assets Research, Geoff Kendrick, reiterated the year-end target price of $7,500 for Ethereum. He pointed out that institutional capital inflows into ETH "are still in the early stages"—since early June, companies holding ETH have purchased 2.6% of the circulating supply, and with ETF inflows, the total reaches 4.9%, surpassing the accumulation speed of Bitcoin during its 2024 breakout period.

Kendrick estimates that ETH Holdings-type companies may ultimately hold 10% of the circulating supply, with Bitmine (BMNR) alone targeting 5% (as previously disclosed by American Crypto News). The remaining 7.4% of the supply waiting to be absorbed may trigger a "supply shock," accelerating price discovery. Additionally, companies like SharpLink Gaming (SBET), which is similar to an "ETH version of MicroStrategy," have seen their valuations drop below net asset value (NAV), and analysts believe this could be a signal that the market has bottomed.

Unlike Strategy (MSTR), ETH Holdings companies also enjoy a 3% staking yield, which Kendrick views as a structural advantage. SBET recently committed to "repurchasing shares if the NAV multiple falls below 1.0," further boosting confidence in the sector. "ETH and ETH Holdings companies appear cheap at current levels," Kendrick stated, noting that the recent pullback may be an attractive entry point.

[Market Signal: Whale Bottom Fishing, Staking Yields Resonating with Federal Rate Cut Expectations]

Kendrick's bullish outlook resonates with market bottom signals. Kevin Rusher, the founder of the real-world asset (RWA) lending protocol RAAC, pointed out that despite short-term sell-offs, ETH has still risen 17% in the past month (Bitcoin has dropped 7%), "ETH seems to have entered a price discovery phase."

Lusha emphasized that companies holding digital assets are betting on Ethereum's core role in DeFi and RWA tokenization. There are rumors that the EU is considering using ETH for the digital euro project, and institutional confidence continues to broaden. In addition, the dual advantages of "capital appreciation + staking rewards" are attracting Bitcoin whales—recently, about $2 billion in BTC funds have rotated into ETH.

The expectation of a Federal Reserve interest rate cut may unlock a new round of retail liquidity, further boosting demand. "A combination of factors could soon make ETH below $5000 a thing of the past," Roush concluded.

(Source: Google Finance)

[Crypto News Brief]

1. Bitwise submitted S-1 filing for Chainlink (LINK) ETF application.

2. Bitwise criticizes JPMorgan, the stablecoin yield battle escalates in Washington.

3. "ETH version of MicroStrategy" SharpLink trading price is lower than NAV - Has Ethereum hit the bottom?

4. Mainstream CEX is nearing a settlement with the SEC, or unlocking the Tokenized Wall Street plan.

5. Whales are buying on the dip, despite nearly 1 billion dollars in crypto holdings being liquidated.

6. The SEC has delayed the approval decisions for two spot crypto ETFs.

7. Analysts recommend three potential tokens to be added to the watchlist.

8. Institutional funds flow into Solana, with Pantera leading a $1.25 billion SOL treasury trade.

9. Bitcoin struggles at the $110,000 level, and traders are retreating across the board.

10. Fidelity emphasizes Ethereum's unique positioning between Bitcoin and Solana.

[Conclusion]

The recent price pullback of Ethereum is backed by a dual narrative of institutional funds steadily building positions and a re-evaluation of ecological value. From the undervaluation of holdings companies below NAV, the rotation of Whale funds, to the combined effects of staking yields and interest rate cut expectations, ETH is accumulating breakthrough momentum. If Standard Chartered's prediction comes true, the current level may become the last bottom-fishing window of the year. Investors should pay attention to ETF liquidity and the progress of the RWA sector, seizing structural opportunities.