Ethereum Price Forecast: ETH’s New Valuation Framework Suggests $8,000 Bull Case

A report from Etherealize calls Ethereum ‘digital oil’ and suggests a possible short-term price target of $8,000 for ETH. Presently priced at $2,610, Ethereum is being underappreciated compared to its digital peers. Technical indicators show it is currently facing strong resistance ahead and could drop further if it fails to recover certain key levels.

Ethereum is making headlines today, as a new valuation framework from Etherealize has labelled ETH as “digital oil,” suggesting a bull case price of $8,000 per token in the near term. Currently, ETH is priced at $2,610, having seen a drop of 4% lately. Etherealize’s report posits that Ethereum is fundamentally mispriced, as it’s often treated like a tech stock rather than viewed as a scarce, yield-bearing asset with strong utility.

This new analysis reveals that Ethereum has been undervalued for quite some time—at least in comparison to its competitors, such as Bitcoin, Solana, and even XRP. ETH’s pricing is still 45% lower than its all-time peak of $4,878 recorded back in November 2021, while Bitcoin has repeatedly set new highs over the last year. According to the report, ETH is suffering from an outdated approach by investors who mainly focus on revenue attributed to network fees, neglecting the asset’s broader commodity and monetary qualities.

Etherealize’s lead analysts, Vivek Raman and Danny Ryan, suggest that ETH should be evaluated like oil, emphasizing its utility and scarcity. They argue that as the traditional economy relies on oil, the digital economy will depend on Ethereum. The comparison extends further, with the firm suggesting that Ethereum’s long-term market cap might even rival the estimated $89 trillion value of global oil, translating into an extraordinary possible price of $706,000 per ETH.

Moreover, the report outlines several bullish scenarios for ETH, predicting $80,000 and the aforementioned $8,000 in the medium and short term respectively. The analysts argue that ETH offers unparalleled upside potential as it captures blockchain-driven growth across numerous sectors including finance, tokenization, and global commerce. “It’s not just a token; it’s collateral for an on-chain economy and yields-bearing financial infrastructure,” the report states.

On the trading front, Ethereum has witnesses a notable recovery, rising over 90% from its lows of $1,400 in April. Institutional interest is also picking up, reflected in $240.29 million in net inflows for US spot Ethereum exchange-traded funds (ETFs) over a stretch of 18 consecutive days of positive movement. This comes amid progressive talks around clearer cryptocurrency regulations.

However, Ethereum is currently facing significant selling pressure, particularly around the resistance level of $2,850. There have been about $128 million in futures liquidations amidst this turbulence, with the price dipping below $2,750. If ETH fails to reclaim this level and securely establish support there, it risks forming a rounding top pattern, which could suggest further declines to $2,500 or even around the $2,110 mark.

From a technical analysis standpoint, ETH needs to firmly hold the $2,750-$2,850 range to inch towards the next key psychological level of $3,400. But there’s downside warning, as indicators like the Relative Strength Index (RSI) are trending downwards, suggesting bearish momentum might continue in the short term. If a decline breaks below $2,110, it could potentially push ETH down to $1,800—a level that would invalidate the current bullish predictions.

Investors are reminded to conduct their own due diligence before engaging in any trades. These insights aim to provide a broad context but shouldn’t be seen as personalized investment advice.