Standard Chartered has lowered its price forecast for Ethereum, setting a target of $4,000 for 2025. This decision is driven by decreasing activity on Ethereum's mainnet.
Standard Chartered's Price Cut
Standard Chartered has cut its Ethereum price target for 2025 from $10,000 to $4,000, reflecting a 60% decline. The bank is concerned about increasing competition from layer-2 networks such as Coinbase’s Base blockchain.
Challenges Facing Ethereum
Ethereum has seen a 42% drop in value since the beginning of the year and a 52% decrease from its December 2024 peak, currently priced around $1,929. This raises doubts among analysts about its potential for a swift rebound. Standard Chartered's head of digital assets, Geoff Kendrick, warned that the platform is in an 'enduring structural decline.'
Future of Ethereum and Competitors
Despite current challenges, there are opinions that tokenized real-world assets could improve Ethereum's long-term outlook. However, in the short term, its recovery depends on questionable upgrades. Meanwhile, many are looking to new players in the space, such as Mutuum Finance.
The strategies and premises surrounding Ethereum raise questions about its future prospects. Given the revised forecast and increased competition, rethinking the investment approach becomes critical.
