• Ethereum prices set to hit $8K by year-end: Goldman
  • ETH market cap stands now at $515 billion
  • In July, Goldman Sachs said Ethereum has potential to overtake Bitcoin

Ethereum could hit an all-time high of $8,000 by the year-end, almost doubling its current price, Goldman Sachs said in a recent note.

Goldman's managing director of global markets, Bernhard Rzymelka, said in a note that was cited by Zero Hedge in a report that the local backdrop looks supportive for Ethereum. Rzymelka outlined the correlation of ETH’s price movements with inflation breakevens for the past two years in the note. Without going into the technical analysis that Rzymelka relied on to make the Ethereum forecast, the note said cryptocurrencies have traded in line with inflation breakevens since 2019.

What that essentially means is if ETH's price continues to move in line with inflation, it will set the asset up for another rally toward $8,000.

The brokerage's analysis comes at a time when Ethereum prices are already on an upward surge. At the time of writing, ETH was trading at $4,356.39, with a market cap is $515 billion, data from CoinMarketCap showed. The second most popular coin hit an all-time high on Oct.28 and has climbed 5.5% in the past seven days, compared to Bitcoin that rose by 0.82% in the last week.

In July, the global investment bank noted in a separate analysis that ethereum has much more potential than bitcoin. Ether "looks like the cryptocurrency with the highest real use potential," Goldman had argued then.

The recent Altair upgrade has intensified interest in ETH, and taken it a step closer to becoming a deflationary asset — which is expected to push its prices up further as the coins become more scarce.