Ethereum Today's Price: $1,900
Standard Chartered analyst Geoffrey Kendrick has revised the bank's Ethereum price projection for 2025 downward.
The updated forecast adjusts Ethereum's 2025 target from $10,000 to $4,000.
Ethereum must overcome a critical descending trendline resistance to break its consolidating trend.
During Tuesday's Asian trading hours, Ethereum (ETH) remained below $2,000 as Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered, updated the bank's ETH price outlook. The UK-based institution now projects Ethereum to reach $4,000 by 2025—a significant downward revision from its initial $10,000 estimate.
Standard Chartered’s Revised 2025 Ethereum Price Outlook
Analysts attribute the lowered forecast to the growing influence of Layer 2 solutions on Ethereum's value proposition.
In a market note to investors, Geoffrey Kendrick outlined the bank's updated expectations following ETH's drop below $2,000—a multi-month low. Key factors driving this revision include:
- Layer 2 Impact: Ethereum's "commoditization" as activity shifts to L2 networks like Coinbase’s Base, diverting ~$50 billion from Ethereum's market cap.
- Fee Diversion: Reduced transaction fees on the mainnet as users opt for L2s, externalizing revenue to entities like Coinbase instead of Ethereum validators.
- Economic Pressures: Declining fee income may force ETH to alter its issuance model, potentially exerting downward pressure on its value.
Kendrick suggested Ethereum could counter this trend by taxing L2 networks' "excess profits" but expressed skepticism about implementation.
Ethereum Price Analysis: ETH Extends Consolidation Phase
- Futures Data: $30.21 million in ETH futures liquidations over 24 hours (longs: $15.77M; shorts: $14.25M).
Key Levels:
- Support: $1,750 (immediate), $1,500 (critical).
- Resistance: Descending trendline (~$2,000), $2,200 (bullish invalidation point).
- Indicators: RSI and Stochastic Oscillator below neutral, signaling bearish momentum.
A daily close above $2,200 could invalidate the bearish thesis and propel ETH toward $2,800.
FAQ: Ethereum’s 2025 Price Trajectory
1. Why did Standard Chartered lower its ETH price target?
The bank cited Layer 2 solutions' erosion of Ethereum's fee revenue and market capitalization as primary factors.
2. What is Ethereum’s key resistance level?
ETH must break the descending trendline near $2,000 to shift its consolidation trend.
3. How might Layer 2 solutions affect ETH’s value?
L2s reduce mainnet activity, diverting fees to external platforms and potentially diminishing ETH's economic utility.
👉 Explore Ethereum’s latest market trends
Related Market Developments
- Bitcoin (BTC) surpassed $10,900, approaching its all-time high.
- ETH ETFs may attract $10 billion inflows in H2 2024, per Bitwise CIO Matt Hougan.
- BitMine announced a $250M private placement to launch an Ethereum treasury strategy.
Disclaimer: This content reflects the author’s views and not official investment advice. CFD trading carries high risk—learn more.