coindesk.com
Investment bank Standard Chartered (STAN) said ether ETH$3,113.37 is positioned to outperform bitcoin BTC$91,150.26 despite weaker-than-expected performance across digital assets this cycle.
Bitcoin’s weaker performance has weighed on the broader crypto market, but ether’s relative outlook has improved and the bank expects the ETH-BTC ratio to climb back toward its 2021 highs over time.
Even so, Standard Chartered trimmed its ether forecasts for 2026 through 2028 to reflect ongoing weakness tied to bitcoin’s performance. At the same time, it raised its longer-term outlook, forecasting ether to reach $40,000 by the end of 2030 as the crypto's structural advantages play out.
The word's second largest cryptocurrency was trading around $3,100 at publication time.
"Passage of the U.S. CLARITY Act — which creates a regulatory framework for digital assets — would boost digital assets, particularly ETH, if it unlocks the next steps for DeFi," wrote Geoff Kendrick, head of digital assets research at Standard Chartered, in the Monday report, referring to the House of Representatives' market structure legislation. The U.S. Senate is working on its own version of this legislation, with a key committee scheduling a hearing to vote on the bill later this week.
Bitcoin has oscillated around the $90,000–$93,000 range in recent days, rebounding from a softer end to 2025 and reacting to macroeconomic catalysts such as U.S. inflation and jobs data, with traders showing caution ahead of key indicators that could influence liquidity and risk appetite.
Ether has tracked bitcoin’s gains modestly, while certain altcoins like XRP have outperformed with double-digit rallies. Despite short-term volatility, total crypto market cap has remained above about $3 trillion, underlining persistent investor interest amid broader macro and regulatory uncertainty.
According to Kendrick, slower inflows into crypto exchange-traded funds (ETFs) and digital asset corporate treasuries have weighed on the sector overall, yet ether benefits from continued buying by Bitmine Immersion (BMNR) the largest Ethereum-focused corporate treasury.
The bank also highlighted its bullish stance on stablecoins, real-world assets and decentralized finance, areas where Ethereum remains the dominant platform.
Progress on scaling Ethereum’s base layer is another tailwind. The bank said its analysis showed that higher transaction throughput has historically translated into a larger market capitalization, and it believes the network’s plan to increase layer-1 capacity by roughly tenfold is gaining traction.
On the regulatory front, Kendrick said passage of the proposed U.S. market structure act could further support Ethereum by unlocking the next phase of decentralized finance (DeFi) growth.
The bank expects the legislation to advance in the first quarter and said a clearer regulatory framework, alongside resilient U.S. equity markets, could push bitcoin to new highs in the first half of the year.
Read more: Standard Chartered Throws in the Towel on Bullish Bitcoin Forecast