According to a recent report by Standard Chartered Bank dated March 17th, the outlook for Ethereum remains challenging, leading to a significant downward revision in its price target from $10,000 to $4,000 by the end of 2025. As of now, Ethereum is trading around $1,903, illustrating its vulnerabilities in a fluctuating market. The report highlights that Ethereum, while still dominant in several areas, is experiencing a decline in its market share, primarily due to the emergence of Layer 2 solutions and their impact on Ethereum’s valuation.
Geoff Kendrick, Director of Digital Asset Research at Standard Chartered, noted the risk factors affecting Ethereum’s long-term viability, suggesting that despite its current hurdles, the anticipated tokenization of real-world assets might facilitate recovery. Kendrick posits that Ethereum’s security features are likely to maintain its competitive edge, potentially allowing it to uphold an 80% market share among digital assets.
Furthermore, the bank projects a drop in the ETH/BTC ratio to 0.015 by the end of 2027, marking a significant low since 2017. While a general market uplift from Bitcoin’s advancements may aid Ethereum’s revival, its ongoing underperformance underscores the challenges the platform faces.