Ethereum's prices remain under pressure as forecasts are downgraded amid weak technical indicators and a descending channel.
Technical Challenges on Ethereum's Price Chart
Ethereum's price remains under pressure as it trades around $1,930, showing continued weakness in daily charts. Analysts note that the asset is following a descending channel pattern, often linked to prolonged consolidation or future declines. Current indicators suggest limited buyer interest with MACD showing weakness and bearish momentum dominating recent sessions. Ethereum has remained below its 5-day and 200-day moving averages, adding to uncertainty over its near-term direction.
Standard Chartered's Forecast Revision
Customers of Standard Chartered now anticipate Ethereum's price to reach $4,000 for 2025 instead of their initial projection of $10,000. The bank mentioned that Ethereum faces numerous operational issues and structural obstacles which hinder its broader market uptake and adoption process. The analysts described Ethereum’s current condition as a 'mid-life crisis,' noting that newer platforms such as layer 2 Base have taken significant market share. They also highlighted the impact of the incoming Converge blockchain, which could further erode Ethereum’s dominance.
Recommendations for the Ethereum Foundation
Standard Chartered emphasized that a proactive shift by the Ethereum Foundation, such as implementing taxes on layer 2 networks, might help stabilize its market position. Without such changes, the report suggests Ethereum may struggle to maintain its valuation. Ethereum-related ETFs have also faltered, with 21Shares set to liquidate its Bitcoin and Ethereum Futures ETFs. However, experts note that the upcoming Pectra activation on the mainnet could help push Ethereum toward recovery, with a possible rise to $5,000 if momentum returns.
Ethereum's price remains pressured with downgraded forecasts. Proactive action from the Ethereum Foundation is needed to maintain relevance and restore positive momentum.
