Overview

Investment bank Standard Chartered has significantly lowered its 2025 year-end price target for Ether (ETH) to $4,000, down from $10,000. This projection reflects ongoing structural issues in the cryptocurrency’s performance, particularly due to limitations created by layer 2 blockchains.

Key Points

• Layer 2 solutions were originally designed to enhance Ethereum’s scalability.
• The recently analyzed platform, Base by Coinbase, has been reported to have caused a $50 billion drop in Ether’s market capitalization.
• Despite the forecasts, a rebound is anticipated, although Ether may continue to underperform in the market.

Quote

“Ether is at a crossroads,” the report mentioned, highlighting its declining dominance in several critical metrics.
“Ether está en una encrucijada,” señala el informe, destacando su disminución en varias métricas críticas.

Market analysts suggest that market dynamics might halt the ongoing decline, particularly if there is growth in tokenized real-world assets, which would reinforce Ether’s position. However, proactive adjustments from the Ethereum Foundation are deemed necessary to drive any constructive change.

Future Expectations

Standard Chartered predicts the ETH/BTC ratio to decrease as well, estimating it will hit 0.015 by the end of 2027, a level not seen since 2017. They also foresee a positive movement in Ether prices following potential increases in Bitcoin (BTC) values.