Standard Chartered's Ethereum (ETH) 2025 price target was slashed from $10,000 to $4,000

A top global bank, Standard Chartered, has drastically cut its Ethereum (ETH) price forecast for 2025, lowering it from $10,000 to just $4,000.

A top global bank, Standard Chartered, has slashed its Ethereum (ETH) price forecast for 2025.

The move, which saw the bank drop the projection by 60%, comes as Ethereum struggles.

ETH has lost over 45% this year.

Standard Chartered suggests taxing Layer-2 networks to prevent further loss of Ethereum’s market share.

Standard Chartered has drastically slashed its Ethereum (ETH) price forecast for 2025, reducing it from $10,000 to just $4,000.

The move, which saw the bank drop the projection by 60%, comes as major issues in Ethereum’s ecosystem, especially Layer-2 networks like Base, are pulling value away from Ethereum’s main network.

ETH Price Drops 45% This Year

At the start of the year, Standard Chartered was optimistic about Ethereum, placing a price target of $10,000 by the end of 2025.

However, Ethereum has seen its price drop by more than 45% this year.

This weakness, especially compared to Bitcoin’s 13% drop in March, has led to a significant reduction in Ethereum’s market strength.

Standard Chartered attributes this partly to the large transaction fees that Layer-2 networks are keeping without returning much to Ethereum’s ecosystem.

If this trend continues, Standard Chartered believes that Ethereum could lose even more market share.

One suggestion to prevent this is introducing a tax on Layer-2 networks that retain too much profit without reinvesting in Ethereum’s ecosystem.

This would be similar to how some countries tax foreign companies that extract resources without benefiting the local economy.

The bank also predicts that Ethereum’s value compared to Bitcoin will continue to decline, with the ETH/BTC ratio possibly dropping to 0.015 by 2027. If this happens, it would be Ethereum’s lowest standing against Bitcoin since 2017.