🪙 Standard Chartered significantly lowers ETH price forecast
Standard Chartered bank has just lowered its ETH price forecast for 2025 to $4,000, down 60% from the original target of $10,000 for four main reasons:
1️⃣ The Merge: The shift to Proof-of-Stake makes ETH less unique compared to other smart contract blockchains.
2️⃣ Expansion of Layer 2: L2 solutions help reduce transaction fees but siphon off a large portion of economic value.
3️⃣ Dencun upgrade: Continues to reduce costs for L2, with huge profits flowing back to them instead of the mainnet.
4️⃣ Base: Operates on Ethereum but all profits from transaction fees go to Coinbase.
Despite lowering the 2025 forecast, the bank remains optimistic that ETH will reach $7,500 by 2028-2029. However, without significant changes, $ETH may continue to be weaker compared to $BTC
