Ethereum has plummeted significantly in recent weeks, mirroring broader cryptocurrency market declines. The world's second-largest cryptocurrency by market capitalization now trades between $1,800 and $1,900, down from $3,352 at the beginning of 2025. This represents a 47% decrease from its value last year.
Market analysts increasingly predict Ethereum's price correction will continue as the cryptocurrency faces mounting bearish pressure. Multiple market factors continue undermining its performance, creating uncertainty among investors.
Standard Chartered Bank recently reduced its Ethereum price prediction by 60%, confirming pessimistic market sentiment. "The bank cuts its 2025 ETH forecast from $10K to $4K, blaming Layer-2 networks like Base, which they say has drained $50B from Ethereum's market value," reported cryptocurrency analyst Andres Meneses on March 17.
Technical analysis shows Ethereum currently trapped in a price slump, with experts expecting deeper declines in coming weeks. The cryptocurrency hovers slightly above the $1,900 level while continuing its downward trajectory. Analysts utilize the MACD indicator to verify the asset's bearish sentiment, while moving averages suggest a neutral trend and potential price consolidation.
"Ethereum remains in the correction zone today, trading around $1,874," noted cryptocurrency analyst LVelarde on social media. "The price continues to move in a descending channel, indicating a possible continuation of consolidation."
LVelarde further explained that moving averages confirm the neutral trend, with prices holding below both 50-day and 200-day moving averages as traders watch for potential rejection or breakout patterns. Since falling below $2,000, market sentiment has turned predominantly bearish, raising questions about Ethereum's future price trajectory.
Standard Chartered's revised forecast represents a significant adjustment to previous optimism. The bank reduced its price target from $10,000 to $4,000, citing Layer 2 networks' impact on Ethereum's value. Bank analysts noted that blockchain modifications, including Ethereum's shift to proof-of-stake consensus mechanism and its scaling roadmap, have affected its overall valuation.
The bank specifically highlighted Coinbase's Base Layer 2 project as an example, suggesting it has cost Ethereum approximately $50 billion in market capitalization.
According to Standard Chartered analyst Geoff Kendrick, these losses will likely continue as Base strengthens its industry position. Kendrick characterized the situation as Ethereum's "midlife crisis," adding that the blockchain has become a commodity within its Layer 2 framework.
Kendrick outlined two potential strategies for Ethereum to address its market slide. First, the cryptocurrency could leverage its security-based dominance regarding real-world asset tokenization, potentially maintaining its 80% market share if security remains its focus. Alternatively, Ethereum could implement taxation on its Layer 2 networks, though Kendrick deemed this approach highly unlikely.
Despite these options, Kendrick expects Ethereum to continue underperforming in the short term as it navigates through technical and competitive challenges in the evolving cryptocurrency landscape.