International bank Standard Chartered has revised its forecast for Ethereum (ETH), lowering the expected year-end price to $4,000. This change reflects a broader trend in the cryptocurrency market where bearish sentiment prevails.
New Forecast for Ethereum
Standard Chartered has adjusted its price prediction for Ethereum (ETH), reducing it from a previous $10,000 to $4,000 by the end of 2025. The bank's analyst Geoffrey Kendrick also anticipates ETH's poorer performance compared to Bitcoin (BTC).
Factors Influencing the Downgrade
Key factors in the forecast revision include Ethereum's inability to change its fee and scaling structure, and diminished network earnings post-Dencun upgrade. Many transactions have shifted to L2, limiting earning opportunities for the Ethereum mainnet.
Market Impact and Future Prospects
Despite the negative trend, some large investors continue to accumulate ETH. However, the development of new assets and innovations is shifting to other blockchains, leaving Ethereum overshadowed by BNB Smart Chain and Solana.
Despite the revised forecast and challenges faced by Ethereum, the network remains a significant part of the crypto space. Its future adaptation and development will depend on its ability to address current scaling and profitability issues.
