Speculators are concerned that the leading altcoin may enter a downward spiral as its prolonged decline threatens a key support level that has defined Ethereum’s lows since 2020. With the bull market evolving, economic challenges such as Trump’s “tariff war,” NATO tensions, and recession fears have come to the forefront, pulling ETH down by 24% this month. Retail liquidity has dried up amid significant market fear, uncertainty, and doubt, leading to rampant panic selling—half of the holders now face unrealized losses, according to IntoTheBlock data.
Could Ethereum Lose its Claim to the Altcoin Throne?
Investment bank Standard Chartered has reduced its end-of-year Ethereum forecast by 60% to $4,000, raising concerns about its position as one of the best cryptos to buy. The bank attributes much of Ethereum’s decline to the rapid growth of Layer 2 solutions like Base, which, while initially designed to enhance the Ethereum network’s scalability, have unintentionally reduced demand for ETH itself. Standard Chartered estimates that the adoption of L2 networks has cut $50 billion from Ethereum’s market capitalization—a trend expected to continue.
ETH Price Analysis: 5-Year Support Under Threat
Ethereum risks losing a critical 5-year support level that has influenced its price movements since 2020. This lower boundary of a symmetrical triangle pattern is pivotal—a breakdown could send Ethereum plummeting to as low as $1,050, marking a potential 45% decrease from current prices. However, today’s growth offers a glimmer of hope, with technical indicators suggesting a possible rebound. The Relative Strength Index (RSI) has reversed after reaching the oversold threshold at 30, indicating that selling pressure may be waning. If buying pressure continues, Ethereum could rise to retest the upper resistance at $3,500, representing an 80% gain from current levels. Nonetheless, against the current bearish market backdrop, this bullish scenario remains uncertain.
Twitter: JUST IN: Standard Chartered Bank cuts $ETH year-end price target by 60% from $10,000 to $4,000. — Watcher.Guru (@WatcherGuru) March 17, 2025
