Emma Nelson 
Ethereum Faces Prolonged Correction as Standard Chartered Slashes Price Target
Ethereum’s price continues to struggle, entering a long-term correction phase driven by on-chain weaknesses and fundamental concerns. The latest blow comes from Standard Chartered, which has dramatically lowered its Ethereum price prediction for 2025 from $10,000 to $4,000. This downward revision reflects growing uncertainty around Ethereum’s future, with analysts citing the increasing competition from Layer 2 solutions and new blockchain innovations as key factors affecting its market outlook.
Ethereum
Ethereum Price Continues in a Descending Channel
Ethereum (ETH) remains trapped in a descending price channel, showing no clear signs of a bullish reversal. At the moment, ETH trades around $1,930, maintaining a lackluster and unenthusiastic ranging pattern. Many analysts believe that unless there is a significant change in market sentiment, Ethereum could face further downside pressure in the coming weeks.
Technical indicators also suggest a challenging road ahead. The MACD indicator, which helps assess momentum, confirms a lack of strong buying pressure, allowing bears to dominate the market. Additionally, moving averages are indicating a neutral trend, raising speculation that Ethereum may enter a prolonged consolidation phase rather than an immediate recovery.
Crypto analyst LVelarde highlighted that Ethereum’s price action is still contained within a descending channel, making it more likely that ETH will continue consolidating instead of mounting a strong rally. Currently, Ethereum is trading below its 5-day and 200-day moving averages (MA)—a bearish signal that suggests traders are waiting for a decisive breakout or rejection before committing to positions.
Since ETH fell below the crucial $2,000 support level, market sentiment has turned notably negative. Analysts warn that if Ethereum continues to struggle at these levels, it may retest lower support levels between $1,800 and $1,850. A break below this range could further reinforce bearish momentum, potentially pushing Ethereum toward new lows before any significant recovery can take place.
Standard Chartered’s Dramatic Ethereum Forecast Cut
One of the biggest shocks to the Ethereum community has been Standard Chartered’s drastic reduction of its ETH price target. The bank initially predicted Ethereum could reach $10,000 by 2025, but it has now slashed that target to just $4,000. This nearly 60% reduction in price expectations suggests that major institutional players no longer see Ethereum’s growth as inevitable.
According to Standard Chartered, Ethereum is undergoing a “mid-life crisis”, with competition from Layer 2 solutions like Base stripping away an estimated $50 billion from ETH’s market cap. Additionally, the upcoming Converge blockchain is expected to capture an even larger share of Ethereum’s dominance, potentially reshaping the landscape of decentralized applications (dApps) and smart contracts.
In a controversial statement, Standard Chartered’s analysts suggested that the Ethereum Foundation may need to implement a radical shift in commercial strategy. One proposed move is the introduction of Layer 2 taxation, where Ethereum could impose fees on Layer 2 projects to compensate for the value being extracted from its ecosystem. However, this idea remains speculative and could face strong opposition from the broader crypto community.
Ethereum ETFs and the Pectra Upgrade: A Path to Recovery?
Ethereum’s struggles are not just limited to price action. Institutional interest in Ethereum exchange-traded funds (ETFs) has also declined, further dampening market sentiment. The 21Shares liquidation of Bitcoin and Ethereum Futures ETFs signals a lack of confidence in Ethereum’s near-term prospects. This development is significant, as institutional investment has played a crucial role in driving Ethereum’s price rallies in past cycles.
However, some analysts remain cautiously optimistic. One potential catalyst for Ethereum’s price recovery is the upcoming Pectra activation on the mainnet. This upgrade is expected to bring major improvements to Ethereum’s efficiency and scalability, potentially sparking renewed interest from both retail and institutional investors. If successful, Ethereum’s price could climb toward $5,000, reviving hope for a longer-term bullish trend.
Final Thoughts: Ethereum’s Future Remains Uncertain
Ethereum remains in a delicate position, with multiple bearish factors weighing on its price. The loss of key support levels, combined with a lack of strong buying pressure, raises concerns that ETH could face further downside pressure. Additionally, increasing competition from Layer 2 solutions and the emergence of rival blockchains present long-term risks that could limit Ethereum’s dominance in the smart contract ecosystem.
Despite this, Ethereum’s ability to adapt and innovate remains a key factor to watch. The upcoming Pectra upgrade, potential shifts in institutional interest, and broader market conditions will all play a crucial role in shaping Ethereum’s trajectory. For now, Ethereum must hold critical support levels and regain momentum to prevent further bearish movement and maintain its long-term relevance in the evolving crypto landscape.
