Ethereum Price Forecast: ETH consolidates below $2,000 as Standard Chartered alters its prediction for 2025

Ethereum Price Forecast: ETH consolidates below $2,000 as Standard Chartered alters its prediction for 2025

  • 18.03.2025 05:49
  • fxstreet.com
  • Keywords: Ethereum, Standard Chartered

Ethereum's price forecast was cut by Standard Chartered from $10,000 to $4,000 in 2025 due to Layer-2 competition. ETH is currently below $2,000 and trading in a range-bound market with risks of further decline.

Coinbase NewsSCBFFsentiment_dissatisfiedCOINsentiment_satisfied
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Estimated market influence

Ethereum

Negativesentiment_dissatisfied
Analyst rating: N/A

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Ethereum

Negativesentiment_dissatisfied
Analyst rating: N/A

Ethereum's price target was reduced from $10,000 to $4,000 by Standard Chartered.

Standard Chartered

Standard Chartered

Negativesentiment_dissatisfied
Analyst rating: Buy

Lowered Ethereum's price forecast from $10,000 to $4,000 and discussed market cap decline due to Layer-2 solutions.

Coinbase

Coinbase

Positivesentiment_satisfied
Analyst rating: Buy

Mentioned as a major reference for Layer-2 solutions impacting Ethereum; their Base blockchain diverted significant capital.

Context

Ethereum Price Forecast Analysis: Business Insights and Market Implications

Overview

  • Price Update: Ethereum (ETH) is trading at approximately $1,900 as of the latest data.
  • Standard Chartered's Updated Forecast:
    • Reduced 2025 price target from $10,000 to $4,000.
    • ethereum's market cap is expected to decline until 2027.

Business Insights

  • Layer-2 Impact: Layer-2 (L2) solutions are diverting transaction fees away from Ethereum's main network, reducing its revenue and potentially pressuring ETH prices.
  • Fee Diversion: Coinbase's Base blockchain alone has siphoned approximately $50 billion from Ethereum's market capitalization.

Market Implications

  • Reduced Revenue Model: Lower transaction fees on Ethereum could necessitate changes to its issuance model to cover operational costs, potentially exerting downward pressure on ETH's value.
  • Competition Intensifies: The rise of L2 solutions and alternative blockchains like Base poses a significant competitive threat to Ethereum's dominance.

Competitive Dynamics

  • Ethereum's Declining Dominance: ethereum is losing market share due to the efficiency and cost-effectiveness of Layer-2 networks.
  • Strategic Considerations:
    • Potential measures to counter fee diversion, such as taxing L2 super-profits, are proposed but viewed with skepticism.

Technical Analysis

  • Price Levels:
    • ethereum is consolidating below $2,000.
    • Key resistance at the descending trendline; breakout needed for bullish momentum.
    • Potential breakdown to test support levels at $1,750 and $1,500 if consolidation continues.
  • Indicators:
    • RSI and Stochastic Oscillators indicate bearish momentum.
    • A close above $2,200 could invalidate the bearish thesis.

Long-Term Effects

  • Market Cap Decline: ethereum's market cap is projected to continue declining until at least 2027.
  • Adaptation Challenges: The likelihood of ethereum adapting its fee model remains uncertain, potentially leading to sustained price pressure.

This analysis highlights the critical challenges and opportunities facing Ethereum in a competitive blockchain landscape.