Standard Chartered Cuts Ethereum (ETH) Price Prediction 60%, Will it Plummet to $4,000?

Jakarta, Pintu News—The cryptocurrency market is always full of unexpected dynamics. Recently, Standard Chartered revised its Ethereum ETH->Current ETH PriceRp 0Market Cap-Trading Volume-Circulating Supply- price target for the end of 2025 from $10,000 to just $4,000. This drastic drop was triggered by some structural factors in the Ethereum (ETH) ecosystem that cannot be ignored.

Check out the full analysis below!

Price Target Adjustment by Standard Chartered

Recent analysis from Standard Chartered shows that the presence of Layer 2 solutions, specifically Coinbase’s Base network, has reduced Ethereum’s (ETH) market capitalization by $50 billion. These Layer 2 networks are designed to increase Ethereum’s (ETH) scalability by reducing transaction fees and congestion.

However, research shows these solutions divert revenue that would otherwise go to the main Ethereum (ETH) network. Base, for example, is funnelling its profits to Coinbase, potentially reducing Ethereum’s (ETH) overall market share. This raises serious concerns about the financial future of Ethereum (ETH) if the Ethereum Foundation does not take proactive steps.

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Predicted Decline in ETH/BTC Ratio

Furthermore, Standard Chartered predicts that the Ethereum (ETH) to Bitcoin BTC->Current BTC PriceRp 0Market Cap-Trading Volume-Circulating Supply- ratio will drop to 0.015 by the end of 2027, a level that hasn’t been seen since 2017. This indicates that Ethereum (ETH) might underperform in the coming years compared to Bitcoin (BTC).

This prediction adds to investors’ and market watchers’ concerns about Ethereum’s (ETH) long-term prospects. Although Ethereum (ETH) still leads in several key areas, such as decentralized finance, stablecoins, and tokenized assets, its dominance is gradually declining. Without effective action from the Ethereum Foundation, such as implementing a tax on Layer 2 solutions, this decline will likely continue.

Also read: Bitcoin Price Prediction: Will the FOMC Meeting Trigger a Massive Rally or a Sharp Drop?

Outlook and Advice for Ethereum (ETH)

Despite predictions of a decline, the price of Ethereum (ETH) still has the potential to rise from its current level of around $1,900, especially if Bitcoin (BTC) experiences a significant rise. However, Standard Chartered cautions that Ethereum’s (ETH) relative performance may continue to decline in the medium term.

This demands careful attention and strategy from stakeholders within the Ethereum (ETH) ecosystem. It is important for the Ethereum Foundation to consider measures such as imposing a tax on Layer 2 solutions to ensure that profits continue to flow to the main network. This could help maintain the stability and growth of Ethereum (ETH) in the future.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto News. Standard Chartered Slashes ETH Price Target by 60%, Predicts $4K by Year End. Accessed on March 18, 2025
• Cointelegraph. Standard Chartered Drops 2025 ETH Price Estimate by 60% to $4K. Accessed on March 18, 2025
• Featured Image: FX Empire