While the largest altcoin Ethereum (ETH) failed to make the expected upward move, Standard Chartered lowered its ETH price target, citing structural weakness.
From 10 Thousand Dollars to 4 Thousand Dollars!
British banking giant Standard Chartered has lowered its 2025 year-end price target for Ethereum from $10,000 to $4,000.
Saying that ETH’s structural decline is likely to continue, the bank lowered its target, citing various factors including the increasing dominance of Ethereum Layer-2 Base.
Geoffrey Kendrick, head of global digital assets research at Standard Chartered, said that Coinbase’s layer 2 network Base has reduced the market value of ETH by $50 billion, and that this trend is expected to continue.
“While Ethereum continues to dominate in key areas, its market position is weakening. Layer-2s and especially Base are now making super profits from the Ethereum ecosystem.
But if market forces, particularly tokenized real-world assets, grow significantly, this structural decline could stop.”
Kendrick also said that another way to stop the decline in ETH is through the Ethereum Foundation.
“Another solution would be for the Ethereum Foundation to tax the excessive profits of Tier-2s, just as governments sometimes impose excessive taxes on foreign mining companies that make excessive profits. Unless that happens, ETH-BTC will continue to fall,” the analyst said.
Kendrick also said that he expects the ETH/BTC ratio to drop to 0.015 by 2027, its lowest level since 2017.
The analyst finally added that although ETH is expected to recover along with Bitcoin (BTC), its underperformance is likely to continue.
*This is not investment advice.
Continue Reading: Standard Chartered Updated Ethereum (ETH) Price Forecast for 2025!
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