Standard Chartered slashes ETH price target by 60%, predicts $4k by year-end

Standard Charterd has changed its target of the end of year lessons from 2025 for Ethereum from $ 10,000 to $ 4,000, citing structural challenges in the Ethereum ecosystem.

Bank analysts attribute this adjustment to the impact of layer 2 solutions, in particular Base network, which has reduced Ethereum (Ethn) Market capitalization of around $ 50 billion.

Layer 2 networks and the base have been developed to improve Ethereum’s scalability by reducing transaction and congestion costs.

However, Standard Chartered’s research indicates that these solutions can divert income from the main Ethereum network.

The base, for example, channels its profits to Jammingpotentially reducing the overall market share of Ethereum.

ETH / BTC ratio declining

The bank also plans to decrease the ETH / BTC ratio, predicting that it will reach 0.015 by the end of 2027, a level not seen since 2017. This suggests that Ethereum could underform compared to Bitcoin in the years to come.

Despite these concerns, Ethereum continues to conduct in several key areas, including decentralized finances, stableAnd tokenized assets.

However, his domination has gradually decreased. Standard Charterd noted that without proactive measures of the Ethereum Foundation, such as the implementation of taxes on layer 2, this drop is likely to persist.

The bank recognized that the price of Ethereum could still go out from its current level of around $ 1,900, especially if Bitcoin undergoes significant gains. However, they warned that the relative underperformance of Ethereum could continue in the medium term.