Jeff Kendrick sees Ethereum bullish signals: What the Fusaka upgrade has changed

Amidst the recent downtrend in the crypto market, Standard Chartered’s Jeff Kendrick remains bullish on Ethereum. According to Jeff Kendrick’s analysis, technological progress and sustained demand from institutions are assessed to support Ethereum’s strength. Currently, Ethereum (ETH) is trading around the $2,830 range, down 4.6% over the past week, but long-term network activity indicators are still showing positive signs.

Network Transaction Volume Surges After Fusaka Upgrade

Since the Fusaka upgrade in December, transaction activity on the Ethereum network has increased to record levels. Jeff Kendrick emphasized that this upgrade has substantially alleviated past capacity bottlenecks. This means that, unlike several previous upgrades, it is leading to an increase in actual network utilization.

With the number of transactions reaching an all-time high, more users and developers can seamlessly process on-chain transactions. Jeff analyzed that this capacity improvement is a key factor that sets the current wave of activity apart from past market rebounds. Unlike some institutions, such as JPMorgan, which question sustainability, on-chain data suggests a real increase in demand.

Strong demand as a result of institutional buying

Bitmine Immersion (BMNR), run by Tom Lee, the largest institutional holder of Ethereum, continues to buy Ether. At last week’s annual meeting, Tom Lee unveiled plans for more aggressive buying in the future, indicating that institutional-level demand remains robust. Despite the BMNR falling 10% since the beginning of the year, institutions’ willingness to buy has not waned.

The continued buy signals from these institutions are acting as significant support factors during the bearish phase of the market. Jeff Kendrick assessed that large institutional buying is likely to drive the bull market ahead.

Jeff’s Analysis: Favorable to Macroeconomic Conditions

Positive signs are also emerging from the macroeconomic side. Greenland-related tariff risks are easing, and the Japanese bond market is showing signs of rebounding after the panic selling at the beginning of the week. In particular, the increasing possibility that BlackRock’s Rick Leader will become the next Federal Reserve chairman is also expected to work in favor of risk assets.

Jeff Kendrick commented, “Leader’s appointment as Fed chairman is likely to lead monetary policy in the direction of easing, which is positive for cryptocurrencies.” This improvement in the macro environment is expected to be a boon not only for Ethereum but also for risk assets such as Bitcoin in general.

Ethereum and BMNR outlook ahead of the weekend

Currently, Bitcoin is trading in the $84,300 range. Based on a comprehensive analysis, Jeff Kendrick argued that “keeping Ethereum and BMNR in long positions through the weekend will provide a good risk/reward ratio.” This is because technological upgrades, continued institutional buying, and an improving macroeconomic environment are all in sync.

Of course, there will be short-term volatility, but according to Jeff Kendrick’s analysis, the current downtrend can be interpreted as a correction in the medium-term uptrend. Investors will need to comprehensively consider technical indicators, institutional demand, and the macro environment to formulate their own investment strategies.