Market Shockwaves: Banking Giant Cuts ETH Target by 60%
Geoffrey Kendrick's research team at Standard Chartered delivered a sobering reassessment of Ethereum's growth trajectory,cardano reddit dramatically scaling back their 2025 valuation projection from five to four figures. This revision places ETH's anticipated peak at $4,000 - a stark contrast to previous bullish estimates that envisioned the asset breaking the $10,000 barrier.
The financial institution's updated modeling suggests Ethereum's ecosystem evolution presents fundamental challenges to its long-term appreciation potential. Kendrick's analysis specifically highlights the unintended consequences of Layer-2 scaling solutions, which while improving network efficiency, appear to be cannibalizing Ethereum's fee-based revenue model.
The Layer-2 Paradox: Scaling Solutions Become Valuation Headwinds
Standard Chartered's revised outlook stems from observable shifts in Ethereum's economic activity distribution. The proliferation of secondary networks like Coinbase's Base chain has diverted substantial transaction volume - and crucially, the associated fees - away from Ethereum's base layer. Kendrick's team estimates these alternative solutions have already siphoned approximately $50 billion from Ethereum's market capitalization.
This structural change creates what analysts describe as a "commoditization effect," where Ethereum's core blockchain increasingly functions as a settlement layer while value accrual occurs elsewhere in the ecosystem. The bank's models suggest this dynamic could persist through 2027, creating sustained pressure on ETH's price discovery mechanisms.
Technical Crossroads: ETH Battles Key Trendline Resistance
Market data reveals Ethereum's struggle to maintain momentum above psychological resistance levels. The asset has faced consistent rejection near the $2,000 threshold, with derivatives markets showing balanced liquidation pressure between long and short positions. Current chart patterns suggest the formation of a descending triangle, typically considered a bearish continuation pattern.
Critical support zones now emerge at $1,750 and $1,500, levels that could be tested if the current consolidation phase resolves downward. Conversely, a decisive breakout above the descending trendline resistance, particularly if accompanied by a daily close beyond $2,200, could invalidate the bearish scenario and open path toward $2,800.
Momentum indicators currently reflect neutral-to-bearish conditions, with both the Relative Strength Index and Stochastic Oscillator hovering below their midline values. This technical configuration suggests market participants remain cautious about establishing aggressive long positions until clearer directional signals emerge.
