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Ethereum's price has fallen over 52% from its peak of $4,107 in December 2024, with TradingView data showing that the price of Ethereum (ETH) has dropped 42% since the beginning of 2025.

Despite being one of the largest cryptocurrencies by market capitalization and dominating the Web3 and decentralized finance (DeFi) sectors, many analysts believe that Ethereum's short-term price outlook remains grim.

Cryptocurrency analyst and Chartered Market Technician Askel Kibar warned traders not to assume that Ethereum is at a discount just because its current price is far from the average trading price.

Kibar explained on the X platform that "bottoming reversals take time" because "all supply needs to be digested."

ETH/USD daily chart. Source: X/Aksel Kibar

Regarding the chart above, Kibar stated, "Those hoping to see Ethereum outperform Bitcoin need to see price action similar to that from 2018 to 2020. After a prolonged downtrend, the price formed a double bottom at the end of 2019. Then, it evolved into a larger head and shoulders bottom reversal pattern."

Currently, Ethereum's price chart does not show any bottoming patterns, leading Kibar to compare trading Ethereum to "catching a falling knife."

Standard Chartered Bank lowers 2025 Ethereum price forecast to $4,000

On March 17, Standard Chartered Bank exacerbated this pessimistic outlook in a letter to clients, lowering its price forecast for Ethereum at the end of 2025 from $10,000 to $4,000, a significant 60% reduction.

Geoff Kendrick, the bank's global head of digital asset research, stated, "We expect Ethereum to continue its structural downtrend."

"The layer two blockchain was originally intended to enhance Ethereum's scalability, but we estimate that Base (a significant layer two blockchain) has reduced Ethereum's market capitalization by $50 billion."

Kendrick noted that Ethereum's reduced transaction fees, "net issuance increase," and the layer two blockchain "capturing Ethereum's economic total" are all unintended consequences of the Dencun upgrade.

When discussing Base absorbing Ethereum's fee revenue, Kendrick added, "In particular, Base—a layer two blockchain developed to address Ethereum's scalability issues—is funneling all its profits (fee revenue minus data recording costs) to its parent company Coinbase."

Matthew Sigel, head of digital asset research at VanEck, and the company's senior digital asset analyst Patrick Bush, share a pessimistic view on Ethereum's price. In a report to investors on March 5, researchers pointed out that the decline in Ethereum's price is "mainly due to the weakening of the core factors that once gave it value."

Analysts again mentioned the layer two blockchains Arbitrum and Base as factors contributing to the reduction in Ethereum's fee revenue, while also noting the popularity of meme coin trading on the Solana blockchain.

This article does not contain investment advice or recommendations. Every investment and trading action carries risks, and readers should conduct their own research when making decisions.

Related: Analysts closely monitor the sell-off, Ethereum price may drop below the "strong" demand zone of $1,900.

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