Ethereum Tilted to $7,000, Beats Solana on Key Valuation Metrics: Standard Chartered

• Ethereum leads ‘overvalued’ Solana in several key metrics, according to Standard Chartered analysts.
• The bank noted that Ethereum could rise to $7,000 under the Harris administration and $10,000 under Trump.
• Ethereum bounced back from the support level near $2,400 as it tries to approach the $2,490 resistance.

The price of Ethereum (ETH) traded in the range of $2,300 to $2,350 on Tuesday, following a report from Standard Chartered Bank, which noted that the number one altcoin is ahead of Solana in several key valuation metrics.

Ethereum vs Solana: Valuation Values

In a recent report, Standard Chartered analysts led by Geoff Kendrick noted that Solana is overvalued compared to Ethereum due to several new valuation metrics:

• Ethereum market cap to network fee revenue is 121, more than 2x less than SOL’s 250.
• Ethereum hosts 38% of the blockchain industry’s developer pool, while Solana hosts only 9%.
• Solana’s annual supply growth rate is 5.5%, while Ethereum’s inflation rate recently turned positive at 0.5%. This implies that ETH’s staking return is 2.3% higher than SOL’s 1%.

Kendrick added that SOL’s price compared to its valuation metrics indicates “the market is pricing in a very bright growth future for Solana.” Analysts wrote that SOL will surpass ETH and Bitcoin if Donald Trump is elected the next US president. Conversely, if Kamala Harris emerges victorious, SOL will follow the top two cryptos by market cap.

Additionally, the bank lowered its ETH forecast from the end of 2025, predicting that the top altcoin will see a new all-time high of $7,000 under the Harris administration and $10,000 under Trump. This is almost 50% lower than the previous prediction that ETH will reach $14,000 by the end of 2025.

Meanwhile, Ethereum ETFs posted neutral net flows on Monday, with the nine issuers posting zero flows, according to data from Farside Investors. This is the second time the products have seen zero flows since launch. The first time was on August 30, when all issuers recorded zero flows.

Ethereum bounces back to key support level as it tries to move towards $2,490 resistance

Ethereum is trading around $2,430 on Tuesday following $18.93 million in liquidations in its derivatives market – long and short liquidations accounting for $10.89 million and $8.04 million, respectively.

ETH has given up a support near the psychological level of $2,400 and is trying to move towards a rectangular resistance at $2,490. However, it needs to clear a barrier near the convergence of the 50-day and 100-day simple moving averages (SMA). A successful move above the $2,490 resistance could send ETH towards $2,596.

ETH/USDT 4 Hour Chart

The Relative Strength Index (RSI) and Awesome Oscillator (AO) momentum indicators are slightly above their neutral levels, with the latter showing falling red bars. This indicates both bullish and bearish momentum is about equal in the market.

A daily candlestick close below $2,395 will invalidate the thesis.