Ethereum ($ETH ) is facing different challenges after Vitalik Buterin's token sale of Dohrnii (DHN) triggered a flash crash. Also, Standard Chartered has slashed its 2025 ETH price forecast to $4,000. On the other hand, Layer-2 networks divert fees away from Ethereum's ecosystem.
Vitalik Buterin's Sell-Off Shakes Market Confidence
A few days back, Buterin dumped 5,000 Dohrnii (DHN) tokens for $124,000, causing a 46% price crash.
DHN plunged from $38.50 to $20.69 following the sale.
Ethereum co-founder still holds 5,000 DHN worth $190,000 as per the blockchain data from Spot On Chain. It has sparked concerns of further downside. However, Dohrnii Labs has offered an OTC sale to limit further market impact.
Ethereum Faces Weakening Market Fundamentals
Standard Chartered slashed its 2025 ETH target from $10,000 to $4,000.
Layer-2 solutions like Base and Arbitrum are reducing Ethereum's fee revenue. It has diverted transactions away from the main network.
Analysts estimate Base alone has removed $50B from Ethereum's market cap.
Rival blockchains like Solana are also taking market share, particularly in memecoin trading. It is impacting further Ethereum fee revenue.
Ethereum Price Outlook: More Downside Ahead?
ETH is down 52% from its December 2024 high of $4,107.
Ethereum is struggling to break above $2,000.
Bearish technical indicators suggest further declines, with support near $1,800.
Analysts warn Ethereum could struggle until 2027 unless it adapts to fee migration trends.
With Ethereum's market structure weakening, can the network find a solution before losing further ground to competitors like Solana ($SOL )?
