Standard Chartered Slashes Ethereum’s 2025 Price Forecast by 60% Amid ETH Layer 2 Concerns and Fee Revenue Decline

Global banking giant Standard Chartered has dramatically cut its 2025 Ethereum (ETH) price prediction from $10,000 to $4,000, a 60% downgrade. The revision stems from slowing fee revenue growth, increasing net ETH issuance, and the impact of Layer 2 chains siphoning value from Ethereum’s base layer, especially following Ethereum’s recent Dencun upgrade. Analysts highlighted technical patterns suggesting ETH has yet to find a solid bottom.

Standard Chartered Crypto Forecast: A 60% Cut to $4,000

One of the main drivers behind the lowered forecast is a noticeable drop in Ethereum’s daily fee revenue, which averaged only $14 million recently compared to the $30 million highs in 2021. Additionally, Ethereum’s post-merge issuance model has increased circulating supply faster than anticipated, weighing down its inflation-adjusted returns. The rise of Layer 2 solutions like Coinbase’s Base and Arbitrum is eroding ETH Layer 1 dominance. ETH Layer 2 concerns have led to a significant downgrade in its price forecast, as investors worry about the impact on Ethereum’s dominance. The bank’s report highlights growing competition from chains like Solana and increasing regulatory scrutiny in its Standard Chartered Crypto Forecast

$ETH Sentiment

CROWD = Bearish 🟥
MP | #SmartMoney = Bullish 🟩 #Ethereum
Check out sentiment and other crypto stats at https://t.co/HQDyBNv73S#Crypto #Marketprophit pic.twitter.com/Y2mV0Wrcnu

— Market Prophit (@MarketProphit) March 17, 2025

Beyond internal metrics, the bank’s report also points to growing external competition. Solana, particularly, has been attracting significant user activity, especially in the memecoin and DeFi space, which traditionally belonged to Ethereum. Combined with the absence of clear bullish signals and ETH’s current technical chart resembling a “falling knife,” Standard Chartered warns that investors should brace for further downside unless fundamental shifts occur. The rise of ETH Layer 2 concerns provokes solutions like Coinbase’s Base and Arbitrum is eroding Ethereum’s Layer 1 dominance.

Ethereum Price Prediction: Consolidation Below $1950 Resistance

ETH maintains its position at $1945 while holding steady within the main resistance area that approaches $1950. An upward price trend features rising trend lines that support the movement with multiple failed challenges against horizontal $1950 resistance. The support range from $1870 to $1880 works as a protective barrier that prevents price falls. The RSI reveals 60.93 numbers that demonstrate modest bullish tendencies that have not reached the overbought threshold.

Source: Analyzed by baishnabtriparna, published on Tradingview on March 18, 2025

MACD indicators show both recent bull crossovers for strength confirmation and bearish death crosses for temporary market dips during the upward move. Ethereum positions to advance to $1975 or potentially reach $2000 after convincingly surpassing the resistance at $1950. The price will tend to return to $1880 support levels if Ethereum fails to exceed $1950 resistance. The market stands in favor of bullish movements yet confirmation by a clean breakout will trigger additional upward momentum. Ethereum’s price prediction has been downgraded by 60% to $4,000, citing concerns over Layer 2 chains and fee revenue.

Ethereum’s Downgrade: Temporary Setback or Deeper Correction?

Standard Chartered’s sharp 60% downgrade of Ethereum’s 2025 price target, from $10,000 to $4,000, has weighed heavily on market sentiment. The report’s focus on slowing fee revenue, rising ETH issuance, and ETH Layer 2 concerns has clearly introduced caution among investors. Compounded by external threats from chains like Solana, Ethereum faces increasing competition in the DeFi and memecoin sectors. Technically, ETH’s consolidation below the $1950 resistance mirrors this cautious outlook. While bullish signals persist, failure to break key resistance levels keeps the uptrend fragile.

Analysts’ presumption about Ethereum price prediction suggests that it will struggle to regain momentum unless it reclaims Layer 1 dominance. Overall, the bearish price forecast and declining revenue metrics are pressuring ETH’s price performance. Unless Ethereum regains Layer 1 dominance or sees renewed fee growth, upside potential remains capped. For now, ETH’s trajectory hinges on whether bulls can reclaim momentum and decisively clear resistance barriers, or if bearish forces continue driving prices toward lower support zones.