Ethereum Price Prediction: Will ETH Crash Below $1,750 or Surge Past $2,800?
Why are DEX volumes on ETH crashing?
Ethereum (ETH) continues to trade within a correction phase, with its price hovering around $1,874. Despite a recent bounce from its daily support level of $1,861, ETH remains in a descending channel, indicating possible consolidation or further downside movement.
Market Indicators Show Mixed Signals
The daily RSI has recovered from oversold levels of 30 to 36, suggesting fading bearish momentum. However, for Ethereum to sustain a recovery, the RSI must surpass the neutral threshold of 50. The MACD indicator confirms prevailing bearish sentiment, while moving averages suggest a neutral trend, with ETH trading below both the 50-day and 200-day MAs.
Crypto analyst LVelarde highlights that Ethereum remains below key moving averages, fueling uncertainty among traders. Many are monitoring the market for potential breakout or rejection points. Since dropping below $2,000, sentiment has turned largely bearish.
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Standard Chartered Lowers Ethereum Price Target
Even institutional players are reassessing their Ethereum outlook. Standard Chartered Bank, which previously projected Ethereum reaching $10,000, has now revised its target to $4,000. The bank attributes this downgrade to the rise of Layer 2 scaling solutions, which are reportedly impacting Ethereum’s value.
Geoff Kendrick, an analyst at Standard Chartered, suggests that projects like Coinbase’s Base Layer 2 have shaved $50 billion off Ethereum’s market cap. He describes Ethereum as facing a “midlife crisis,” as its Layer 2 ecosystem increasingly competes with the main chain.
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Weakening Onchain Metrics and Institutional Outflow
Ethereum’s onchain data reflects declining market confidence. DEX volumes on Ethereum fell by 34% in the past week, affecting Layer 2 networks like Base, Arbitrum, and Polygon. Meanwhile, institutional interest appears to be waning, with Ethereum ETFs recording $293 million in net outflows since March 5.
While Ethereum remains the dominant force in total value locked (TVL) at $47.2 billion, a 9% weekly decline signals increasing pressure from competitors. The ETH futures premium also dropped to just 3%, its lowest in over a year, highlighting weak demand from bullish traders.
Can Ethereum Reverse Its Downtrend?
To regain momentum, Ethereum could reinforce its security advantage in real-world asset tokenization. Alternatively, it could impose fees on Layer 2 solutions, though this remains unlikely.
As market uncertainty persists, traders and investors remain cautious, closely watching ETH’s next move. Will Ethereum overcome its slump, or is further downside ahead?