Coinbase's Blockchain Shift Sparks Ethereum Price Plunge

Standard Chartered Lowers Ethereum Price Target to $4,000: Here's Why

Standard Chartered, a British multinational bank, has lowered its Ethereum price target to $4,000, citing concerns over the cryptocurrency's scalability and regulatory uncertainty. The revised target is a significant decrease from the bank's previous estimate of $5,000.

The bank's analysts pointed to Ethereum's ongoing scalability issues as a major factor in their revised target. Despite the development of scalability solutions like Ethereum 2.0 and Optimism, the bank believes that Ethereum's ability to process transactions will remain a major limitation.

"Despite the progress made on Ethereum 2.0, we remain cautious on the scalability front," the analysts said in a note. "While we expect Ethereum 2.0 to improve scalability, we believe it will take several years to reach its full potential."

Regulatory uncertainty was also cited as a concern, with the bank noting that the lack of clear guidelines on the use of Ethereum in financial services could impact its adoption and price.

"Regulatory uncertainty remains a key risk for Ethereum," the analysts said. "The lack of clear guidelines on the use of Ethereum in financial services could impact its adoption and price."

Coinbase, a leading cryptocurrency exchange, has also weighed in on the issue, stating that it believes Ethereum's scalability issues will be resolved in the long term.

"While we acknowledge the scalability challenges facing Ethereum, we believe that the development of Ethereum 2.0 and other scalability solutions will ultimately resolve these issues," a Coinbase spokesperson said. "We remain optimistic about Ethereum's long-term potential and believe it will continue to play a key role in the blockchain ecosystem."