Bloomberg Intelligence's senior commodities strategist Mike McGlone has published a grim outlook on Ether's price dynamics, believing the asset is more likely to decline toward $2,000 than rise to $4,000. Central to his argument is Ether's multi-year underperformance compared to Bitcoin, gold, and major indices, which he sees as diminishing the asset's appeal in portfolios. McGlone also points to a macroeconomic factor: a return to historical volatility levels in the US stock market could pressure all risk assets, including Ether.
Bloomberg Intelligence's Ether Forecast
McGlone, working at Bloomberg Intelligence as a senior commodities strategist, bases his forecast on the prolonged absence of sustainable growth and relative price stagnation in Ether. He explicitly states that under current conditions, a move toward $2,000 appears more likely than a rise to $4,000, emphasizing the importance of the duration of underperformance in assessing the asset. The analyst places Ether in a cross-asset context, comparing its performance to gains in Bitcoin and other markets, reflecting a broader picture of risk repricing — see also the discussion of a possible $80,000 retest for Bitcoin amid market turbulence.
Factors Pressuring Ether's Price
Bloomberg highlights several reasons why Ether may remain vulnerable: prolonged underperformance relative to market leaders, structural consolidation signals, and macroeconomic uncertainty. Each of these factors individually and collectively can influence investor sentiment and capital allocation.
- Prolonged underperformance: Ether has shown relative stagnation compared to Bitcoin, gold, and equities, reducing its relative attractiveness.
- Risk of renewed US stock market volatility: McGlone warns that a resurgence in volatility could prompt a reassessment of all risk assets.
- Structural consolidation signals: Bloomberg previously viewed Ether's extended consolidation as a sign of vulnerability linked to liquidity, leverage, and inter-market correlations.
Optimistic Forecasts from Other Analysts
Several researchers offer more favorable scenarios for Ether, pointing to specific catalysts that could shift price dynamics. Jeffrey Kendrick, head of digital asset research at Standard Chartered, notes that scaling upgrades and institutional tokenization growth could restore momentum. Bernstein analyst Gautam Chhugani associates Ether's valuation potential with stablecoin growth and the issuance of real-world assets in on-chain form, while Coinbase Institutional research head David Duong cites developer activity, layer-2 volumes, and improved fee dynamics as supporting factors; for a broader overview, see the ETH price forecast.
Why This Matters
If you mine or hold mining equipment and crypto assets, Ether's price movement affects the value of your holdings and operational decisions regarding sales or reinvestments. Even if you don't mine Ether directly, cross-correlations with Bitcoin and overall market volatility can impact liquidity and exchange opportunities. Meanwhile, signals of rising developer activity, increasing layer-2 volumes, or tokenization are indicators worth monitoring because they can alter fundamental demand drivers.
What To Do?
- Monitor key indicators: track developer activity, layer-2 volumes, and fee trends — these metrics are cited by analysts as supportive factors.
- Assess volatility risks: prepare plans for sharp price moves, including stop-loss levels and scenarios for liquidation or reinvestment.
- Diversify and hedge: consider asset diversification and hedging tools if you hold a significant ETH share in your portfolio.
- Follow new upgrades and tokenization: technical changes and institutional flows can shift trends, so stay updated on relevant announcements and reports.
Frequently Asked Questions
Why does Bloomberg Intelligence have a bearish outlook on Ether? The answer is based on Ether's prolonged underperformance versus Bitcoin and other assets, as well as the risk of renewed broad market volatility, which increases pressure on risk assets.
What price levels does Mike McGlone highlight? He assesses that the current market structure makes a move toward $2,000 more likely than toward $4,000 for Ether.
How does US stock market volatility affect Ether? McGlone points out that a return to normal (historical) volatility in equities could intensify pressure on all risk assets, including Ether.
Which analysts have a more optimistic view on Ether? Standard Chartered, Bernstein, and Coinbase Institutional identify scaling upgrades, stablecoin growth, tokenization, and developer activity as potential triggers for improved price dynamics.
For a broader understanding of market risks and interconnections, it is also useful to read materials on the Fed policy impact on the crypto market and forecasts for other assets.