Ethereum Price Prediction: Will ETH Crash Below $1,750 or Surge Past $2,800?

Ethereum price prediction remains uncertain as ETH struggles below $2,000. The banking giant Standard Chartered reduced its 2025 forecast to $4,000 from $10,000. The downgrade follows the decline in Ethereum’s market share following Layer-2 solutions that have been capturing transaction fees from its main network. Economists observe that such a trend can reduce Ethereum’s blockchain economic activity, impacting its long-term value.

Ethereum’s Sliding Market Potential

Ethereum’s crypto market position has been under increasing pressure, primarily due to the explosion of Layer-2 solutions. Geoffrey Kendrick of Standard Chartered described how ETH is now “commoditized,” losing fees and market capitalization as users move to cheaper and faster L2 solutions.

A prime example is Coinbase’s Base blockchain, which is said to have siphoned $50 billion from Ethereum’s market capitalization. L2s destroyed Ethereum’s validator revenue with the re-allocation of fee revenues to third parties, disaggregating the digital asset market.

Ethereum’s declining revenue model has also led other analysts to question whether it will be able to sustain its current economic structure. With L2s taking more and more activity on the network, Ethereum’s fee-based structure of income could require radical reforms to become stable over the long run. If Ethereum fails to make adjustments, it risks losing the top spot for smart contract platforms.

Market Analysis and Price Movement

Ethereum price prediction continues to be bearish as ETH cannot surpass the $2,000 resistance, and indicators point to more downside towards $1,500. Technical indicators like the Relative Strength Index (RSI) and Stochastic Oscillator indicate bearish momentum.

Chart 1 – Provided by CryptoFXSTreet, published on TrendingView, March 18, 2025

Last week’s liquidations in the crypto market also suggest uncertainty. Coinglass data show that $30.21 million in futures contracts were liquidated, with longs and shorts roughly equal at $15.77 million and $14.25 million, respectively. Daily closes well above $2,200, though, would reverse the trend to $2,800.

Institutional demand for Ethereum fell compared to the last couple of years, as other blockchains gained traction. Even though Ethereum remains the dApps and smart contracts champion; competition from rival blockchain platforms further decreases its market share.

Ethereum’s Future Outlook

Kendrick suggests that Ethereum can impose fees on Layer-2 networks to recapture lost income. However, he is not optimistic about this action, comparing it to the government imposing taxes on government-owned mining companies. Without intervention, ETH has long-term underperformance in the crypto investor market.

Standard Chartered also predicts that Ethereum’s blockchain economic activity will reduce until 2027. There can be short-term recoveries, but increasing adoption of Layer-2 solutions means that ETH may not be able to regain its past leadership in the digital asset market.

Some believe that the long-term success of Ethereum hinges on whether or not it can overcome Layer-2 integrations. The gradual transition to Ethereum 2.0 and increased scalability and efficiency may mitigate the impact of L2s. These updates have to be implemented, though, to regain confidence in the economic health of the network.

Conclusion: What’s Next for ETH?

With Layer-2 networks altering the dynamics of its cryptocurrency investors, Ethereum finds itself at a turning point. While a break above significant resistance levels may set off a bull run, there are concerns about how L2 solutions will affect Ethereum’s overall blockchain economic activity. Long-term investors must see how ETH responds to these shifting dynamics in the new crypto space. The coming months will be crucial for Ethereum price prediction as the market watches how ETH adapts to Layer-2 challenges and regulatory developments.