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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.