Ether’s structural decrease (ETH) is expected to continue, said Investment Bank Standard Chartered (Stan) in a research report on Monday that cuts its target price of 2025 years for the second largest cryptocurrency in the world.
Standard Chartered said that now sees Ether at $ 4,000 at the end of the year, below $ 10,000 before. Ether quoted around $ 1,903 at the time of publication.
“Ether is at a crossroads,” said the report, and although “still dominates in several metrics,” this domain has been falling for some time.
The block chains of layer 2 were intended to improve scalability in the Ethereum block chain, but the standard estimates that the Coinbase (Coin) base has reduced Ether’s market limit by $ 50 billion, and said he hopes that this trend will continue.
Market forces could eventually stop this structural decrease, “especially if the active world tokenized grows significantly”, since “ETH security domain means that it should maintain its 80% share in this market,” wrote Geoff Kendrick, head of digital asset research at Standard Chartered.
Even so, “only a proactive change of commercial direction of the Ethereum Foundation, such as layer 2 of taxes, could achieve that now”, which according to the bank was unlikely.
Standard Chartered said his expects that the ETH/BTC ratio decrease to 0.015 for the end of the year 2027, the lowest level since 2017.
The bank still sees a recovery in the ether price from the current level of around $ 1,900, since a Rally in Bitcoin (BTC) is expected to lift all digital assets, but the low performance of the cryptocurrency will continue.
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