Banking giant Standard Chartered has dramatically decreased its 2025 Ethereum (ETH) price target from $10,000 to just $4,000.
According to the bank's recent report, Ether has found itself in a precarious position due to the growth of popular layer-2 solutions such as Coinbase's Base.
Taxing layer-2s could potentially reverse this decline, but the probability of such a measure being implemented is low.
The $4,000 still means that the price of the flagship cryptocurrency might more than double its price this year. According to CoinGecko data, the altcoin is currently changing hands at $1,911 after dropping by nearly 5% over the past seven days.
However, Standard Chartered is still extremely bearish on the ETH/BTC pair. It has been predicted that the flagship altcoin would continue severely underperforming Bitcoin, eventually plunging to the lowest level since 2017.
The ETH/BTC pair has been collapsing since the beginning of the year, plunging by nearly 36%. It is currently sitting at just 0.023 BTC. The flagship altcoin has lost a whopping 75% against Bitcoin after reaching a local peak of 0.088 BTC in December 2021 following the peak of the NFT craze and the DeFi bonanza. Now, however, the leading altcoin is struggling to come up with a new narrative that would help it regain its bullish momentum.
Godfrey BenjaminAs reported by U.Today, Standard Chartered predicted that the price of the leading cryptocurrency could reach $200,000 as soon as this year.
The bank also predicted that the price of the leading cryptocurrency would eventually skyrocket to $500,000 in the long term.
Vladislav Sopov
Dan Burgin