Standard Chartered reduces Ethereum forecast: Course target slips to $ 4,000-what does that mean for investors?

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Standard Chartered reduces Ethereum price forecast by $ 6,000 $

The Standard Chartered Bank recently reduced its forecast for the Ethereum Prize (ETH) at the end of the year from $ 10,000 to $ 4,000. This decision was largely influenced by the below -average performance of Ethereum and the increasing dominance of the Base Layer 2 Chain, especially Coinbase.

Ethereum caused a stir in December 2020 when it rose beyond its all-time high of $ 4,891.70. Since then, however, a downward trend has established itself. The bank noted that Ether is now "on the crossroads". Although Ethereum is still dominant with regard to important key figures, a significant decline in market capitalization was found. Analysts report that almost $ 50 billion on Base Layer 2-chain projects have flowed, which could lead to the fact that the market shares of Ethereum continue to decrease.

Geoff Kendrick, the head of the Department of Digital Currencies at Standard Chartered, believes that the structural decline from Ethereum will eventually come to an end. He suspects that market forces will ultimately intervene to stop the downward spiral, especially if the tokenization of physical assets is becoming more important. However, Kendrick emphasizes that Ethereum, in order to keep his leading role in the area of ​​tokenization, should keep at least 80 % market share. A scenario in which Layer 2 chains are taxed could improve the situation for the Ethereum Foundation, but remains unlikely.

should investors buy Ethereum?

Currently Ethereum is traded at around $ 1,900, while the market mood remains careful. These uncertainties are partially attributed to significant economic events in the United States, in particular to the trade structures and conflicts under the government of Donald Trump and to disappointments within the crypto community.

Although this article does not represent investment advice, the current prices may offer a favorable entry for investors who want to invest in Ethereum, or for existing investors who want to adjust their cost items. However, it is important to note that earlier forecasts never be a guarantee and the mood on the market can change constantly. Therefore, every investor should make their own research and be professionally advised before an investment.