Although Ethereum has been leading in the crypto market in recent years, the latest reports are increasing concerns about the future. Standard Chartered has reduced its price target for 2025 for ETH from $ 10,000 to $ 4,000. Analysts say that this sharp revision is due to the fact that Layer 2 solutions attract great value from the Ethereum ecosystem.
How did Ethereum have lost $ 50 billion?
According to the Standard Chartered report, the Base Layer 2 network developed by Coinbase decreased about $ 50 billion from Ethereum’s market value. Layer 2 solutions reduce the process load of the main network, while Ethereum also reduces the income generated by the trading fees.
Analysts suggest Ethereum’s Layer 2 projects should apply “super tax”. Otherwise, it is emphasized that the ETH/BTC ratio may fall further and Ethereum’s competitiveness may weaken. Ethereum’s depreciation of 73 %against Bitcoin in the last five years shows how effective this fall trend is.
ETH/BTC ratio and price movements are worrying
The value of Ethereum against Bitcoin decreased to 0.22 and reached the lowest point of the last five years. This shows that Ethereum has lost its power to market leadership and that investors are turning to Bitcoin.
Macro Analysis Specialist Greg Magadini says ETH is still offering a good “Short” opportunity. The overall sales wave in the Altcoin market and the decrease in ETH/BTC rate indicate that Ethereum may lose more value. ETH, which is currently traded at $ 1,900, may decline to $ 1,600 or $ 1,200.
What are the critical levels for the future of Ethereum?
Looking at the price movements of Ethereum in 2023 and 2024, it is seen that it rose from $ 1,600 to $ 4,000. However, the current decrease trend increases the likelihood of completely erasing these gains.
According to analysts, Ethereum must first create a permanent support of over $ 2,000 in order to rise again. Otherwise, hanging below $ 1,600 may shake the trust of large investors and cause greater losses in the Ethereum ecosystem.
As we have already mentioned as Kriptokoin.com, investors should closely monitor the effect and general market trends in this critical process for Ethereum. The coming weeks may be decisive in Ethereum’s price movements.
