Standard Chartered Lowers Ethereum Price Target for 2025 by 60% to $4,000
Investment bank Standard Chartered has updated its price target for Ethereum in the year 2025. Previously, a price of $10,000 per ETH was expected; now it’s only $4,000. The cautious view on the market environment counts as the main reason.
Ethereum Forecast 2025: Investors Should Be More Cautious
Just at the beginning of this year, it looked like the time had come to make big predictions for the Ethereum blockchain. However, the experts at Standard Chartered have stepped back significantly in their forecast published this Monday and presented by individual media outlets. Instead of the previously expected $8,000 to $10,000 per ETH, the analysts now only expect $4,000 to $5,000.
Reason for Price Reduction Cited as Cautious Market Environment
They justify this reduction with a generally more restrained market environment. Risks from interest rate hikes, stricter regulation, and challenging economic development are cited as factors that curtail the upside potential of ETH. The assessment also mentions the competition from other blockchains, which increasingly challenges the once-so-unique Ethereum network with competitors like Polkadot and Solana.
Ethereum 2.0 Offers Opportunities
The experts at Standard Chartered remain optimistic about the groundbreaking change to Ethereum 2.0, however, and believe it will have a positive impact. They expect that the switch to a proof-of-stake method will lead to a reduction in energy consumption by 99% and will attract institutional investors interested in environmental, social, and governance (ESG) criteria. Here, however, enthusiasm seems somewhat diminished by the fact that this switch still needs to prove itself in practice, after numerous delays.
Other Expert Opinions Operand More Cautiously
Notably, other financial experts share Standard Chartered’s general caution regarding Ethereum, although they point to different factors. The relative strength of Bitcoin and the changing atmosphere on the crypto market, which leans more skeptically on projects with strong use cases and centralized approaches, are also highlighted. For example, Jamie Dimon, the CEO of JPMorgan, recently labeled Bitcoin as worthless.
Conclusion: Ethereum with Significant Loss of Confidence in the Long Run?
For Ethereum investors and supporters of the crypto sector, this development and shifted forecasting must feel disappointing, as many had apparently harbored high hopes. Still, the conclusion gradually emerges that institutional and private investors would do well to take approaching investments in Ethereum with more caution.
Price Development for Ethereum Shows Volatility
Currently, Ethereum prices stand at around $3,470, with October 2023 starting almost at this mark as well. In the summer of 2021, Ethereum prices had temporarily exceeded the $4,200 mark. Now it remains to be seen whether the negative forecasts will actually translate into restrained price developments.
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