Standard Chartered: Structural downturn in Ethereum expected to continue, lowers year-end target price to $4,000
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Standard Chartered: Structural downturn in Ethereum expected to continue, lowers year-end target price to $4,000
According to CoinDesk, Standard Chartered said in a research report released on Monday that Ethereum's structural downturn is expected to continue, and the bank has significantly lowered its year-end 2025 price target for Ethereum (ETH) from a previous $10,000 to $4,000. In the report, Standard Chartered stated, "Ethereum is at a crossroads," noting that while "it remains dominant across several metrics," this dominance has been declining for some time. The report added that Layer-2 blockchains were originally designed to enhance Ethereum’s
Navigating Web3 tides with focused insightsTechFlow News, according to CoinDesk, Standard Chartered stated in a research report released on Monday that Ethereum's (ETH) structural decline is expected to continue. The investment bank has significantly lowered its year-end 2025 price target for Ethereum from a previous $10,000 to $4,000.
The bank noted in the report: "Ethereum stands at a crossroads," and while "it still dominates across multiple metrics," this dominance has been declining for some time. Layer-2 blockchains were originally designed to enhance Ethereum’s scalability, but Standard Chartered estimates that Coinbase’s Base has already reduced Ethereum’s market capitalization by $50 billion—and expects this trend to persist.
Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, said market forces might eventually halt this structural decline, "particularly if tokenization of real-world assets grows substantially," as "ETH’s security dominance means it should retain 80% share of this market." However, "this could only be achieved if the Ethereum Foundation actively changes course—such as by taxing Layer-2s," which the bank considers unlikely.
Standard Chartered forecasts that the ETH/BTC ratio will fall to 0.015 by the end of 2027, the lowest level since 2017. Nonetheless, the bank still expects Ethereum’s price to recover from its current level of approximately $1,900, as rising Bitcoin (BTC) prices are likely to lift all digital assets, although Ethereum’s underperformance will persist.
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