Standard Chartered adapts to Ethereum course forecast downwards-is the ETH course at risk of relegation?
- Increased L2 activity reduces the fee income, which affects Ethereum’s economic model.
- Standard Chartered’s downward correction shows the growing uncertainty about the future growth of Ethereum below the changing market conditions.
According to an earlier CNF contribution, Ethereum (ETH) was at risk of losing its dominance to XRP. The British Standard Chartered Bank has therefore significantly revised its Ethereum course forecast for 2025 and reduced $ 10,000 to $ 10,000. Is the Ethereum in danger again?
The significant downgrading gives rise to concern about the future development of Ethereum and causes an investigation of the factors that influence this decision.
Standard Chartered has just reduced its price for Ethereum from $ 10,000 to $ 4,000 at the end of the year – a decline of 60 %. Wall Street learns faster than I thought that Bitcoin was the king.
Standard Chartered has just lowered it’s end of year price target for Ethereum to $4,000 from $10,000.
60% down.
Wall Street is learning quicker than I thought that Bitcoin is King.
– British plans
(@BritishHodl) March 17, 2025
L2 tools: Each medal has two sides
Originally developed to improve the scalability of Ethereum, Layer 2 solutions such as Base unintentionally deducted value from the Ethereum main network. Standard Chartered estimates that Base alone deducted about $ 50 billion from Ethereum’s market capitalization, as was announced in a tweet by British Hodl.
These Layer-2 platforms process transactions outside the blockchain, which reduces overload, but also the fees and activity on the primary blockchain of Ethereum.
Falling fees and increased net emissions
The relocation of transactions to Layer-2 networks at Ethereum has led to a significant decline in fees. Lower on-chain activities lead to lower income for validers and miners, which affects the entire economic model of the Ethereum ecosystem.
In addition, a higher net output of ETH-tokens contributes to an offer pressure that further influences the price dynamics and market movements.
Analyst perspectives: Caution is required
Market analysts advise caution with regard to the short -term prospects of Ethereum. The lack of clear soil formation in the Kurscharts from ETH indicates potential for further declines.
The trade in Ethereum under the current conditions was compared to the “catching of a falling knife”, which indicates the risks associated with the attempt to attribute the market in the middle of the continuing volatility.
Uncertain market development
As CNF emphasized in 2024, Ethereum’s price was in danger after Justin Sun had sold 50 % of his ETH stocks. Ethereum is currently being traded at around $ 1,900.61, which means a slight increase of 0.20 % in the last 24 hours and 0.46 % in the last week.
The intraday trading span recorded maximum values of $ 1,950.34 and lows of $ 1,881.70, which underlines the latest volatility in the cryptocurrency.
As for the teachings, the revised forecast of Standard Chartered underlines the challenges that Ethereum has to face in order to keep its market position in the middle of a developing technological and economic landscape.
Investors and stakeholders are recommended to observe these developments closely, since the interaction between Layer-2 solutions and the Ethereum core network will probably continue to shape the development of cryptocurrency in the coming years.
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