Ethereum, the second largest cryptocurrency by market capitalization, has been facing a downward trend since its peak in December 2024. Currently, it is down more than 52% from its all-time high of $4,107 and has seen a 42% decline since the beginning of 2025. Despite its dominance in the Web3 and DeFi space, many analysts are predicting a grim short-term outlook for ETH.

One such analyst, Askel Kibar, a chartered market technician, warns traders against assuming that ETH is trading at a discount simply based on its current price. He explains that bottom reversals take time and all the supply needs to be accumulated before a price increase can occur. Looking at the chart, Kibar notes that ETH’s current chart does not show any signs of bottoming formation, making trading Ethereum akin to “catching a falling knife.”

Adding to the dim outlook, Standard Chartered, a multinational banking and financial services company, recently revised down their end of 2025 ETH price estimate from $10,000 to $4,000, a drastic 60% reduction. Geoff Kendrick, the bank’s global head of Digital Assets Research, believes that ETH will continue its structural decline. He cites lower fees, higher net issuance, and layer 2 blockchains taking Ethereum’s GDP as unexpected results of the Dencun upgrade.

Other analysts, such as VanEck’s Head of Digital Assets Research Matthew Sigel and Senior Analyst Patrick Bush, share a similar view on ETH’s price decline. They attribute it to the erosion of the core factors that once made Ethereum valuable, such as layer 2 blockchains Arbitrum and Base, and the popularity of memecoin trading on the Solana blockchain.

In conclusion, while Ethereum remains a dominant player in the crypto market, its short-term price prospects seem grim. Analysts warn against assuming that ETH is trading at a discount and predict a continued decline in its value. As always, it is important for investors to conduct their own research and make informed decisions when it comes to investing in cryptocurrencies.