Ethereum lost nearly half of its value by 2025. The price has dropped over 46% in the past year as ETFs have failed to draw capital and altcoins are losing revenue. Ethereum is aiming for a big comeback after months of discussion on Vitalik Buterin’s proposal to increase scalability and the future of Ethereum Foundation.
Ethereum is a rising star with 3 catalysts
EthereumETH() has lost its relevance, revenue, and new user demand over the last four months in 2025. Growthepie data shows that a key metric for measuring a chain’s relevance and demand among market players, the number unique addresses interacting within the ETH eco-system with at least one chain within a week, has reached a record high.
There was a 62% increase week-on-week in active addresses. Layer 2 dominance increased 57%.
Etheruem is the most popular stock among traders on Wednesday, April 30th with 82% of those who trade it. Solana comes in second at 82%.SOLBitcoin (BTC). Oriole Insights’ data indicates that Ethereum is gaining popularity and a bullish attitude from traders as the market turns greedy.
Recent announcements indicate that Ethereum, which has underperformed most altcoins since 2025 and is currently lagging behind Bitcoin and other major currencies, will soon make a strong comeback.
The altcoin may try to compete against Solana by attempting to revive from the grave and compete on the decentralized exchanges, applications and revenue generated in 2024-2025.
The Ethereum Foundation has proposed a pivot towards the main product, the Token. By scaling Layer 1 chain, blobs, or improving user experience, it could boost adoption, increase revenue, and bring back traders’ interest in the eco-system.
Vitalik Buterin’s plan of Ethereum scaling
Vitalik Buterin of Ethereum proposed to improve the scalability and performance of the Ethereum Execution Layer in April. Buterin proposed an idea that could solve the main problem of the ETH Network, a primary bottleneck in scaling, by making the Ethereum execution layer simpler for the users.
Important concepts for Ethereum developers remain the same. Buterin claims that the changes will be “barely noticeable.” The ETH holder’s community debates the effect of the proposed change and if it is sufficient to make Ethereum useful again.
Ethereum v. Solana
SOL is leading the debate between Ethereum and Solana in key metrics such as Layer 2, DEX, etc. Dune’s analytics dashboard, which compares Ethereum with its Layer 2 chain and Solana in the past 3 months, shows SOL had nearly 4 times the number of transactions during that period.
SOL has nearly 30 billion dollars more in DEX volume than ETH, while the number of active addresses is almost three times higher on Solana.
Comparing the monthly comparisons of Solana and Ethereum Layer 2s transactions, active addresses, and Layer 2s shows a complete picture. For Ethereum to win the decentralized market, it will need a massive increase in both metrics.
Ethereum: five burning questions
What is the significance of BlackRock’s $150 Billion deal to Ethereum’s future?
BlackRock, one of the biggest asset managers in the industry, will introduce a class of digital shares to its Treasury Trust Fund worth 150 billion dollars. Ethereum developers and holders believe this will benefit ETH’s value and its altcoin in the long run.
BNY Mellon would use DLT to inject capital into RWA, as it is a company that utilizes the Ethereum Blockchain. Larry Fink is the CEO at BNY Mellon. The firm uses the Ethereum blockchain.
Ethereum can benefit from capital inflow.
Can Ethereum ETFs compete with Bitcoin?
Farside Investors’ data indicates that there were five days consecutively of net capital flows to U.S. based Spot Ethereum ETFs. The exception was April 30, where the flow was negative by $2.3 million. Nearly $2.5 billion of institutional capital went into Ethereum over the last 15 days.
Although this number is low when compared with Bitcoin, altcoins are catching up to Bitcoin’s demand in the institutional sector, slowly, in the 2nd quarter of 2025.
What do the derivatives data say about Ethereum’s future?
Data from Coinglass on derivatives shows that options open interest and trade volumes have all increased in the past 24 hours. Although derivatives traders have not been entirely bullish about Ether, and the long/short is below one, as of 1 May it stood at 0.9771.
Between April 9 and 30th, the open interest for Ethereum rose by almost $3 billion. This shows a constant increase in value across all exchanges.
An asset’s rise in OI can be considered positive.
How much will Ethereum rise in price?
Derive.xyz’s data indicates that, while retail traders anticipate a decline in the price of ETH, Derive sentiment is more bullish. Calls outnumber puts up to four-to-one. According to the platform, the chances of an increase in price above $2300 on May 30 are 9 percent. However, the likelihood of a decline below $1600 is 21 percent.
A whopping 81.8 per cent of all Ethereum premiums is used to purchase calls.
Is the price of Ethereum at a bottom for a new cycle?
Lab4Crypto reports that Ethereum finally reached the -1SD level, allowing sidelined investors to take advantage of a dollar cost average to buy ETH. Chart shows the final touch of the -1SD level, which is traditionally considered the bottom for altcoins.
Ethereum has reached its lowest level since April 8th, after a period of nearly three years.
Ethereum Price Prediction
Ethereum’s price may rise by nearly 11 per cent and reach the upper border of the Fair Value Gap, which is $2,000 – a crucial psychological threshold for this altcoin. Ether’s bullish trend is supported by two important momentum indicators: RSI, and MACD.
RSI is 55, and slopes upwards. MACD shows green bars in the histogram above neutral. Both indicate further gains for the altcoin.
Ethereum’s resistance could be found at the $2,533 level, the lower bound of the Fair Value Gap, on a daily basis. In the medium- to long-term, Ethereum will aim for $3,000 as its target.
Ethereum’s support could be tested at $1.658, which is the lower bound of the Fair Value Gap for the daily timeframe.
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Source: crypto.news
