Ethereum (ETH) is struggling to regain momentum as it enters a deep correction phase, with recent developments fueling pessimism around its price outlook. Standard Chartered’s decision to drastically reduce its 2025 price target for ETH by 60%, from $10,000 to just $4,000, has added to the uncertainty surrounding the asset.
Currently hovering around $1,930, Ethereum remains firmly within a descending channel, with analysts predicting further price declines. The MACD indicator and moving averages show a lack of buying strength, and Ethereum’s price continues to move below the 5-day and 200-day moving averages, raising concerns of a potential consolidation phase or further bearish movement.
Technical indicators suggest that Ethereum may test support levels around $1,800-$1,850, and a break below these levels could reinforce the downward trend.
The negative sentiment surrounding ETH was further exacerbated by Standard Chartered’s revised forecast. The bank now predicts that Ethereum will struggle to perform ahead of its 10th anniversary, citing a “mid-life crisis” for the network. The rise of Layer 2 solutions, such as Base, has already diminished Ethereum’s market cap by $50 billion. Additionally, the upcoming Converge blockchain is expected to capture a portion of Ethereum’s market share.
The bank’s analysts suggest that Ethereum may require a significant shift in its commercial strategy, such as taxing Layer 2 solutions, to reverse the current downward trajectory. Despite these challenges, some experts believe that the activation of the Pectra upgrade on Ethereum’s mainnet could spark a rally, potentially driving the price back to $5,000 in the future.
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