Ethereum Price Drops: Is the Decline Over?

Ethereum Price- Ethereum Faces Tough Road Ahead: What Analysts Are Saying

Ethereum Price– Ethereum’s price has seen a significant drop, with data showing a 52% decrease from its December 2024 high of $4,107. As of March 2025, Ethereum has dropped by 42%, continuing its downward trend. Despite Ethereum’s strong presence as one of the largest cryptocurrencies and its leadership role in Web3 and DeFi, experts are concerned about its price outlook in the short term.

Crypto analyst and market technician Askel Kibar warns against the assumption that Ethereum is trading at a discount simply because its price has fallen so much. Kibar emphasized on X (formerly Twitter) that “bottom reversals take time” and that “all that supply needs to be accumulated.” He further compared trading Ethereum during this phase to “catching a falling knife,” suggesting that there’s no clear sign of a bottoming formation yet.

In a recent client letter, Standard Chartered drastically revised its 2025 price forecast for Ethereum, reducing its target from $10,000 to $4,000, marking a 60% decrease. Geoff Kendrick, head of Digital Assets Research at the bank, noted that Ethereum is expected to continue its “structural decline.” He pointed out that Ethereum’s scalability was hindered by the rise of Layer 2 blockchains, particularly Base, which has taken significant market share from Ethereum. “Base has removed USD 50bn from ETH’s market cap,” Kendrick said.

Impact of Layer 2 Blockchains on Ethereum

Kendrick’s analysis highlights how the growth of layer 2 solutions, like Base, has absorbed Ethereum’s fee revenue. Specifically, Base passes its profits to Coinbase, its parent company, which has created unforeseen consequences for Ethereum’s fee structure. Additionally, analysts at VanEck have echoed similar concerns, noting that the popularity of Layer 2 blockchains and the rise of memecoin trading on competing platforms like Solana are undermining Ethereum’s core value propositions.

While Ethereum remains a dominant force in the blockchain space, these challenges suggest a tougher road ahead in the near future.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.