Ethereum Today’s Price: $1,900
Standard Chartered analysts, led by Geoffrey Kendrick, have downgraded their 2025 Ethereum price forecast.
The bank revised its projections, lowering Ethereum’s 2025 price target from $10,000 to $4,000. Ethereum must overcome a critical descending trendline resistance to break out of its current consolidation phase.
During Tuesday’s Asian trading hours, Ethereum (ETH) traded below $2,000**, prompting Standard Chartered’s Global Head of Digital Assets Research, Geoffrey Kendrick, to update the bank’s ETH price expectations. The UK-based financial institution now predicts Ethereum will reach **$4,000 by 2025—a significant downward revision from its earlier $10,000 estimate.
Standard Chartered’s 2025 Ethereum Price Outlook
Analysts attribute the lowered forecast to the growing influence of Layer 2 (L2) solutions on Ethereum’s valuation.
In a market report to investors, Kendrick highlighted key reasons for the revised prediction:
- Layer 2 networks (e.g., Coinbase’s Base) divert ~$50 billion from Ethereum’s market cap by redirecting transaction fees away from the mainnet.
- Ethereum’s "commoditization" as L2 solutions outperform it in scalability and cost-efficiency.
- Declining fee revenue could pressure ETH’s monetary policy, potentially necessitating issuance model adjustments.
Kendrick suggested Ethereum might counter this trend by taxing L2 profits, though he expressed skepticism about implementation.
👉 Why Layer 2 Solutions Are Reshaping Ethereum’s Future
Ethereum Price Analysis: ETH Extends Consolidation
- Futures Data: Over $30.21 million in ETH futures were liquidated in 24 hours (Coinglass).
- Key Resistance: A descending trendline caps ETH’s upside near $2,000.
- Support Levels: A breakdown below $1,750** could lead to a test of **$1,500.
- RSI & Stochastics: Both indicators signal bearish momentum dominance.
Bullish Scenario: A daily close above $2,200** invalidates the downtrend, potentially rallying ETH to **$2,800.
FAQs
Q: Why did Standard Chartered lower its ETH price forecast?
A: Rising L2 adoption reduces Ethereum’s fee revenue and market dominance, prompting the bank to revise its 2025 target from $10,000 to $4,000.
Q: What’s Ethereum’s critical resistance level?
A: ETH must break the $2,000–$2,200 descending trendline to shift its bearish trend.
Q: How do Layer 2 solutions impact ETH’s price?
A: L2s (e.g., Base) divert transaction fees from Ethereum’s mainnet, reducing economic activity and pressuring ETH’s value.
👉 Ethereum’s Roadmap Amid L2 Competition
Disclaimer: This content reflects the author’s views only. Investors should seek independent financial advice before making decisions. CFDs are leveraged products with significant risk.