Kendrick Predicts Crypto Regulation Will Fuel ETH’s 2026 Rally

Regulatory clarity ignites Ethereum's next bull run—Kendrick points to policy as the unexpected catalyst.

The Framework Factor

For years, crypto markets have moved on hype and speculation. Now, a new force is entering the equation: hard law. Kendrick argues that clear, structured regulation—often feared as a constraint—is becoming the very foundation for institutional capital to flood in. It’s not about limiting innovation; it’s about legitimizing the entire asset class.

Ethereum’s Prime Position

Why Ethereum? Its established ecosystem, transition to proof-of-stake, and sprawling DeFi and institutional project landscape make it the go-to regulated asset. Banks and funds don’t want to bet on the fringe—they want the blue-chip of smart contract platforms. As rules solidify, ETH becomes the safe harbor, and the money follows.

The 2026 Inflection Point

Kendrick pins the major move to 2026. That’s when key regulatory frameworks are projected to be fully operational globally, providing the certainty large-scale investors crave. The rally won’t be driven by retail FOMO alone, but by trillion-dollar balance sheets finally getting the green light—a classic case of Wall Street showing up fashionably late to the party and buying out the bar.

So, forget the wild west narrative. The next crypto boom might just be sponsored by lawmakers and compliance departments. Sometimes the most bullish signal isn't a moon tweet—it's a 500-page policy document. Just ask the traditional finance dinosaurs currently trying to tokenize their own extinction.

Kendrick cites crypto regulation as a catalyst for ETH’s rally in 2026

Love this take from @vaneck_us on ethererum $ETH

– by 2030, base case $ETH -> $22,000
– by 2030, bull case $ETH -> $154,000https://t.co/hCjsZNL61A pic.twitter.com/C10yq3QRfX

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) January 9, 2026

Kendrick pointed to weaker-than-expected BTC performance weighing on the broader cryptocurrency industry as evidence for ETH’s potential rally. He also argued that continued purchases by the largest Ethereum-focused digital asset treasury company will push ETH higher this year. 

The analyst forecasted that Ethereum will surge, driven by its dominance in stablecoins. He also pointed to the progress in plans to increase the digital asset’s Layer-1 throughput by tenfold.

Standard Chartered’s analyst also believes that regulations surrounding the crypto industry are a potential catalyst to catapult ETH’s price. He pointed to the Senate Agriculture and Banking Committees’ vote on the CLARITY Act legislation expected on Thursday. 

Kendrick acknowledged that the passage of the bill will establish a clearer framework for virtual assets. He also believes the legislation could significantly benefit Ethereum by unlocking further DeFi developments. Standard Chartered revealed that it lowered its ETH-USD forecast for 2026-2028 due to the weakness in bitcoin prices. 

“Despite our more positive outlook for ETH versus BTC, we lower our ETH-USD forecast for 2026-2028 due to BTC weakness. However, we raise our ETH-USD forecast for end-2029, and we see the price reaching $40,000 by end-2030.”

-Geoff Kendrick, Head of Digital Asset Research at Standard Chartered.

For the near term, Kendrick predicts that Ethereum’s price will reach $7,500 in 2026, which WOULD be a new all-time high for the digital asset. The analyst had previously forecasted that ETH would hit $12,000 this year. For its longer-term outlook, Standard Chartered predicts that ETH prices will reach $30,000 by 2029 and $40,000 by 2030.

Kendrick’s forecast suggests that Ethereum would have to surge by nearly 1,200% from current prices to hit its $40,000 target. At the time of publication, Ethereum is trading at $3,099, down nearly 1.45% in the past 24 hours. The digital asset has also declined by more than 1.7% over the past 30 days.

Bitmine adds more ETH to its balance sheet

Standard Chartered’s forecast on ETH comes as the leading publicly traded Ethereum treasury firm, Bitmine Immersion Technologies, continues accumulating the digital asset. The firm purchased an additional 24,266 ETH over the last week, worth around $76 million.

Bitmine’s latest acquisition has increased its ETH portfolio to over 4.16 million ETH, valued at more than $13 billion. The firm now ranks as the largest Ethereum treasury company and also the second-largest digital asset treasury behind Strategy. 

Bitmine’s ETH stockpile accounts for about 3.5% of the entire Ethereum circulating supply. The firm’s Chairman, Tom Lee, argued that many positive things favor Ethereum in 2026. He pointed to the adoption of stablecoins and tokenization, saying both will make the ETH blockchain the settlement LAYER of Wall Street.

Lee also stated that 2026 is the year crypto prices will recover, calling the October 10 record-setting liquidation a mini-crypto winter. He also believes ETH will record stronger gains in 2027-2028.

Lee predicted on January 2 that Ethereum could reach $250,000, a more than 7,800% surge from the current prices. He also forecasted a future price of $5,000 per share for BNMR based on its relationship to ETH’s price. The firm is seeking shareholder approval to increase the authorized share count from 500 million to 50 billion.

Lee stated that the treasury company needs the increase in authorized shares to accommodate future share splits. He also argued that the initiative will allow BNMR to issue shares for capital market activities selectively and to consider selective acquisitions.

Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.