Ethereum has faced mounting pressure in 2025, with its price dropping 56% from its November highs. Compared to other top-tier cryptocurrencies like Bitcoin (BTC) and Solana (SOL), Ethereum’s performance has significantly lagged. In fact, ETH’s exchange rate against SOL hit an all-time low, while its value relative to BTC hovered near its 2020 lows.
This underperformance has sparked debate across the crypto community: Is Ethereum dying?
In a recent YouTube video, Charles Hoskinson, founder of Cardano (ADA), predicted Ethereum may not survive the next 15 years. He cited the growing dominance of Layer-2 networks—such as Base, Optimism, Arbitrum, and Polygon—as evidence that Ethereum’s core ecosystem is fragmenting. These scalable, low-cost alternatives have drawn users away from Ethereum’s mainnet, long criticized for slow transaction speeds and high gas fees.
But a deeper look at on-chain and ecosystem data tells a different story—one that suggests Ethereum is far from obsolete.
Ethereum’s Ecosystem Strength Remains Unmatched
Despite the rise of competitive Layer-2 solutions, Ethereum continues to lead the blockchain industry in key fundamental metrics.
Decentralized exchange (DEX) volume over the past 30 days reveals Ethereum as the second-largest chain by activity, processing over **$57 billion** in trading volume. Only Solana surpassed it, with $61.3 billion in DEX volume during the same period. This demonstrates that Ethereum remains a central hub for decentralized trading and liquidity.
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Even more telling is Ethereum’s dominance in Total Value Locked (TVL)—a key indicator of confidence and capital deployment in DeFi. Ethereum boasts a TVL of $107 billion, capturing 57% of the global market share. This dwarfs all competitors and underscores its position as the most trusted and widely used smart contract platform.
Additionally, Ethereum leads in stablecoin market share, holding 51% of all stablecoins issued across blockchains, with a circulating supply valued at $124 billion. This level of adoption reflects institutional and retail trust in Ethereum’s security and decentralization.
Growing User Base and Long-Term Holder Confidence
Contrary to narratives of decline, Ethereum’s user base continues to expand. Santiment data shows that the number of unique ETH holders has grown to over 144.8 million, up from 130 million just last October. This steady increase signals ongoing interest and participation in the network.
Moreover, the five-year average holder age for ETH has climbed to 658 days, indicating that long-term investors are not selling despite price volatility. This "hold-to-earn" behavior reflects strong conviction in Ethereum’s future value and utility.
Such metrics challenge the idea of Ethereum’s irrelevance. Instead, they point to a maturing network with deep roots in the crypto economy—resilient even during bearish market cycles.
Technical Analysis: Key ETH Price Level at $2,150
Looking at the daily price chart, ETH bottomed at $1,383 earlier this month before staging a meaningful rebound. It has since climbed to $1,787—the highest level since April 6—breaking above critical resistance zones.
The price has now moved above the upper boundary of a descending channel that formed after November’s peak. It has also cleared the 25-day moving average and formed a small bullish flag pattern—a potential sign of continuation.
The Awesome Oscillator is nearing a bullish crossover above zero, reinforcing upward momentum. Historically, similar setups—especially after strong support holds—have led to rallies. Recall that the last time ETH bounced from this zone in November, it triggered a 40% surge.
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Key Support and Resistance Levels
- Immediate Resistance: $2,150
This level marks the low point from August and September 2024. A breakout above $2,150 could open the door for a rally toward **$3,000**, especially if broader market sentiment improves. - Breakdown Risk: Failure to surpass $2,150
If ETH stalls and reverses below this level, it may signal a bearish pattern failure. Further downside could target $1,300–$1,400, especially if macroeconomic conditions worsen. - Strong Support: $1,383 (April low)
This recent bottom remains a critical floor. As long as this level holds, the bullish structure remains intact.
Frequently Asked Questions (FAQ)
Q: Is Ethereum still relevant with so many competing blockchains?
A: Absolutely. While Layer-1 competitors and Layer-2 rollups are gaining traction, Ethereum remains the most secure, decentralized, and widely adopted smart contract platform. Its ecosystem depth—from DeFi to NFTs to institutional adoption—keeps it at the center of Web3 innovation.
Q: Why is ETH underperforming BTC and SOL?
A: Several factors contribute: high gas fees during congestion, slower finality compared to newer chains, and investor rotation into faster or cheaper alternatives. However, upcoming upgrades like EIP-4844 (Proto-Danksharding) aim to drastically reduce L2 costs and improve scalability.
Q: Can Ethereum reach $3,000 again?
A: Yes—technically and fundamentally. A break above $2,150 would be a strong bullish signal. With potential catalysts like spot ETH ETF approvals in mid-2025 and continued L2 growth, a move toward $3,000 is within reach if market conditions stabilize.
Q: Are long-term investors still holding ETH?
A: Data says yes. The rising average holder age and increasing number of addresses suggest strong conviction. Large holders (whales) have not shown signs of panic selling, which supports price stability over time.
Q: What makes Ethereum different from other smart contract platforms?
A: Network effects. Ethereum has the largest developer community, the most audited smart contracts, and the deepest liquidity pools. Even chains built on Ethereum’s tech (like Arbitrum or Optimism) rely on its base layer for security—making it the backbone of much of DeFi.
Final Outlook: Ethereum Is Evolving, Not Dying
The narrative that “Ethereum is dead” overlooks both data and context. While competition is fiercer than ever, Ethereum is adapting—not collapsing. Its shift toward a modular architecture (with L2s handling scale and L1 ensuring security) may be its greatest strength.
Rather than losing relevance, Ethereum is becoming the settlement layer for an entire ecosystem of high-speed chains. This evolution doesn’t diminish its value; it redefines it.
As institutional interest grows and regulatory clarity improves—especially around ETH ETFs—Ethereum is well-positioned for a resurgence. For investors, developers, and builders, the message is clear: Ethereum isn’t going anywhere. It’s just entering its next phase.
With strong fundamentals, a growing user base, and key technical indicators turning positive, ETH could be setting up for a powerful comeback in late 2025—proving once again that reports of its death are greatly exaggerated.