ETH Struggles Below $2K While Standard Chartered Slashes Price Target Citing More Weakness Ahead – Retail’s Wary Too
Synopsis
According to Standard Chartered, Ethereum’s scaling solutions divert value away from the base layer rather than reinforcing its dominance.
Ether (ETH) remained below $2,000 in U.S. market hours on Monday after Standard Chartered forecast that the cryptocurrency’s decline would continue. The bank, which had previously projected a year-end target of $10,000, has now lowered its estimate to $4,000, citing structural weaknesses in Ethereum’s ecosystem.
In a report by CoinDesk, Standard Chartered said Ethereum is “at a crossroads.”
While it remains the second-largest cryptocurrency by market capitalization and continues to dominate certain blockchain metrics, its overall market share has been slipping.
The report pointed to growing competition from Layer 2 networks, particularly Coinbase’s (COIN) Base (BASE), which it estimates has already reduced Ether’s market capitalization by $50 billion.
Standard Chartered expects this trend to persist, with Ethereum’s scaling solutions diverting value away from the base layer rather than reinforcing its dominance.
The bank suggested market forces could eventually slow the decline, particularly if tokenized real-world assets (RWAs) gain traction. It noted that Ethereum’s security features give it an 80% market share in tokenized RWAs, a figure that could help stabilize its position.
On Stocktwits, retail sentiment around Ethereum’s token improved slightly but remained in ‘bearish’ territory.
One user forecast that Ethereum could lose its crown as the second-largest cryptocurrency if its decline continues.
Another expects Ethereum’s price to dip lower after the Federal Reserve’s policy meeting outcome on March 19.
Ethereum’s price has gained around 1% in the last 24 hours as Bitcoin saw some relief. However, the cryptocurrency is down 4.4% over the last seven days and has lost more than 45% over the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Read also: Bitfarms Stock Dips On Bitcoin’s Weakness Despite Stronghold Acquisition– But Retail Sentiment Improves
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.