**Ethereum’s Price Struggles: Is the Futuristic Blockchain Losing Its Edge?**
Ethereum has been a titan in the world of cryptocurrency, leading the charge in decentralized finance (DeFi) and Web3 innovation. But even giants can stumble. As of now, ETH’s price has plummeted more than 52% from its December 2024 high of $4,107, and it’s down 42% since the start of 2025.
With such a drastic downturn, investors are left wondering: Is Ethereum at a bargain price, or is this just the beginning of a prolonged downward spiral? Let’s break it down.
Ethereum’s Price Drop: A Falling Knife?
Many traders might think ETH’s current price levels indicate a buying opportunity, but some experts urge caution. Crypto analyst and chartered market technician Askel Kibar warns against assuming ETH is a steal just because it’s trading far below its historical average.
Kibar recently took to X (formerly Twitter) to emphasize that market bottoms take time to form. He likened catching Ethereum at these levels to trying to grab a falling knife—dangerous and unpredictable.
ETH/USD daily chart
Reflecting on Ethereum’s past, Kibar noted that for ETH to outperform Bitcoin, it would need to replicate price action similar to 2018-2020, when ETH formed a double bottom in late 2019 and then confirmed an H&S bottom reversal. Unfortunately, there’s no sign of such a formation yet.
Standard Chartered Slashes ETH’s 2025 Forecast
Adding to the pessimism, Standard Chartered Bank issued a March 17 report lowering its end-of-2025 price target for ETH from $10,000 to $4,000—a shocking 60% reduction.
According to Geoff Kendrick, the bank’s Global Head of Digital Assets Research, Ethereum’s future looks grim:
“We expect ETH to continue its structural decline.”
One of the biggest culprits? Layer 2 solutions like Base and Arbitrum.
Layer 2 blockchains were designed to improve Ethereum’s scalability, but Kendrick argues they’ve had an unintended side effect—pulling away revenue and weakening ETH’s value proposition.
“Base, a key layer 2, has removed $50 billion from ETH’s market cap.”
On top of that, Kendrick highlights that Base—the L2 built by Coinbase—passes all its profit back to Coinbase, instead of funneling it back into Ethereum’s ecosystem. This creates a situation where Ethereum loses transaction fees while others benefit.
VanEck Analysts Echo the Bearish Sentiment
Ethereum’s woes don’t end there. Analysts from VanEck, a major investment management firm, also see ETH in trouble.
In a recent investor note, Matthew Sigel (Head of Digital Assets Research) and Patrick Bush (Senior Analyst on Digital Assets) pointed out that Ethereum’s struggle is due to the erosion of its core value drivers.
Their key concerns?
- Layer 2 Networks (Arbitrum, Base) cutting into Ethereum’s fee revenue
- The rise of meme coin trading on Solana, which has drawn liquidity away from Ethereum
As a result, Ethereum has lost its competitive advantage, making it harder for investors to justify betting big on ETH’s recovery.
Is Ethereum Still a Smart Investment?
Ethereum remains a dominant force in crypto, but these developments suggest it may not be an unstoppable one. The rise of Layer 2 solutions, the threat of rival blockchains like Solana, and declining fee revenues raise critical concerns about ETH’s long-term value.
While some investors still see long-term promise, it’s clear that Ethereum has entered a critical phase—and the coming months could determine whether it rebounds or continues its downward trajectory.
One thing is certain: crypto markets are unpredictable, so always do your own research before making investment decisions.
Related: Ethereum price could tumble below $1.9K—Analyst warning
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are risky—always conduct your own research before making a decision.
