Standard Chartered Revises Ether Price Forecast Amid Structural Decline
In a recent research report released on Monday, investment bank Standard Chartered has significantly revised its price target for Ether (ETH), anticipating a continued structural decline for the cryptocurrency. The bank has lowered its 2025 year-end forecast for Ether from an ambitious $10,000 to a more conservative $4,000. As of the time of publication, Ether was trading at approximately $1,903.
The report emphasizes that “Ether is at a crossroads,” highlighting that despite its ongoing dominance in various metrics, this supremacy has been diminishing over an extended period. The introduction of layer 2 blockchains, designed to enhance scalability on the Ethereum blockchain, has added pressure on Ether’s market position. Standard Chartered estimates that Coinbase’s Base has already reduced Ether’s market capitalization by around $50 billion, and the bank expects this trend to persist.
However, the report also suggests that market dynamics could eventually halt this structural decline, particularly if the adoption of tokenized real-world assets accelerates. It notes that “ETH’s security dominance means it should maintain its 80% share of this market,” as stated by Geoff Kendrick, the head of digital assets research at Standard Chartered. Nevertheless, the bank warns that “only a proactive change of commercial direction from the Ethereum Foundation – such as implementing taxes on layer 2s – could effectively alter this trajectory,” a change that they deem unlikely to occur.
Furthermore, Standard Chartered predicts that the ETH/BTC ratio will decline to 0.015 by the end of 2027, marking the lowest level since 2017. Despite these challenges, the bank remains optimistic about a potential recovery in Ether’s price from its current level near $1,900, fueled by an anticipated rally in Bitcoin (BTC) that may uplift all digital assets. Nonetheless, the report concludes that Ether’s underperformance relative to its peers is expected to continue.
