• Standard Chartered slashes Ethereum’s price target to $4,000, down from $10,000.
• Layer 2 networks, including Coinbase’s Base, have reduced Ethereum’s market cap by $50B.
• Ethereum’s price faces ongoing decline as Layer 2 growth diverts transaction fees.

Standard Chartered Investment Bank adjusted its Ether price target prediction by 60%, lowering the forecast to $4,000 from $10,000 for the year 2025. The report published on Monday reflects a growing concern for Ether’s downward trend in the cryptocurrency market.

According to Geoff Kendrick, Standard Chartered’s Head of Digital Assets Research, Layer 2 solutions like Coinbase’s Base blockchain have reduced Ethereum’s market capitalization. Base’s rise was intended to improve scalability on the Ethereum network; instead, it reduced Ether’s market cap by $50 billion. This has led to lower fees for Ether transactions, ultimately decreasing Ethereum’s revenue.

Kendrick’s analysis points to a shrinking dominance for Ethereum, despite its continued leadership in several blockchain metrics. According to Kendrick, Layer 2 networks operating above the Ethereum network serve to boost scalability by shifting cryptocurrency transaction fees toward different entities, such as Coinbase. Ethereum’s fee revenue and network activity have declined, leading to a decrease in Ether’s value in the market. Ethereum’s “GDP,” along with its revenue, decreased substantially due to the rise of Layer 2s.

Ethereum’s market value at press time stands at $1,900, having decreased by 42% since the beginning of 2025. According to the latest market assessment, Ethereum shows indications of remaining outperformed despite its prominence in the decentralized finance (DeFi) and Web3 sectors.

Standard Chartered maintains caution on Ethereum’s short-term future yet indicates that an improvement in market conditions could lead to its recovery. For example, increasing tokenized real-world assets, which commonly use Ethereum, could help the network regain some of its dominance. However, Kendrick stated that this scenario is unlikely unless Ethereum undergoes a significant strategic shift.

The bank also forecasts that the Ether to Bitcoin (ETH/BTC) ratio will continue to decline, reaching its lowest level since 2017 by the end of 2027. This suggests that even if Ether experiences some price growth, it will likely continue to underperform compared to Bitcoin.

Standard Chartered presents this revised outlook while analysts show increasing doubt about Ethereum’s long-term market viability. Cross-chain blockchain competitors and networks that operate through Ethereum’s Layer 2 framework now threaten Ether’s uncertain outlook. Experts predict Ethereum values may stay challenging during the short term because the network faces rising competition alongside declining transaction fees.

The upcoming Pectra upgrade of Ethereum will bring improvements including better staking procedures and alternative payment methods for gas fees beyond Ether. The update, which will become active on April 25, 2025, will result in new network capabilities. Experts doubt that these upcoming updates will stop Ether’s ongoing market decline.