A report on Friday indicated a potential tactical trading opportunity in Ethereum ETH/USD, targeting a 20% gain with a prudent 5% stop-loss.
What Happened: 10x Research believes that a combination of supportive policies, increased stablecoin inflows, and a technical breakout pattern make Ethereum a compelling short-term play, despite their skepticism about its long-term prospects.
According to the report, the repeal of SAB 121, an accounting bulletin that previously discouraged banks from offering crypto services, is a key factor.
"With the repeal of this guidance, banks may now be more willing to serve crypto customers. This could open the door to various services, including staking offerings, cross-margin borrowing using crypto assets as collateral, and broader crypto-related financial products.", stated the research firm.
This development, coupled with a potential breakout from the current triangle pattern of the asset, could propel Ethereum to higher levels.
Why It MattersL While remaining bullish on Bitcoin BTC/USD, 10x Research emphasizes a notable shift in stablecoin activity.
Tether‘s USDT/USD inflows have stalled after the FOMC meeting; Circle's USDC/USD has seen "aggressive issuance growth since the U.S. election, adding $17 billion in total supply, with $9 billion issued in 2025 alone."
This indicates a growing preference for regulatory-compliant stablecoins among institutional investors, with these investors primarily buying Bitcoin.
However the firm noted the potential for diversification into Ethereum.
"Policy support for crypto assets in the U.S. remains intact, and flows from ETFs to stablecoins suggest the crypto rally could persist," stated the report. The firm concluded that, "at this point, the risk/reward might be compelling for Ethereum as a tactical trade."
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