Ethereum News Today: Ethereum’s Layer-2 Migration: Enhancing Scalability, Diminishing Worth?

Ethereum (ETH) dropped to its lowest point in four months, slipping under $3,000 this week and sparking concerns about the overall strength of the ongoing crypto bull market. By 5 p.m. ET, the cryptocurrency had fallen 3.46% to $3,417.77,

. This downturn intensified a persistent decline over several weeks, with registering an 11.44% loss so far this month and trading 31% below its record intraday peak of $4,955.23 set in August 2025.

This price slump has coincided with weakening fundamentals on the

blockchain. , representing a 13% decrease compared to the previous month. Activity on Ethereum-based decentralized exchanges (DEXes) has also slowed, with trading volumes dropping to $17.4 billion over the past week—a 27% decline from last month. Although Ethereum still leads in TVL, it is facing mounting competition in trading activity from platforms such as and Chain.

Shifting user preferences underscore a larger movement toward Ethereum’s layer-2 scaling networks.

, collectively handling more than 100 million transactions just in the last week. However, this shift has led to lower demand for fees on Ethereum’s main chain, making it harder for ETH to maintain upward price momentum. Some critics point out that while layer-2s boost scalability, they also disrupt the network’s unified economic structure.

Even with the recent downturn, certain analysts believe a recovery could be on the horizon.

in areas like real-world asset (RWA) tokenization and decentralized stablecoin infrastructure, with projects such as Sky (previously MakerDAO) playing vital roles. The future trajectory of ETH will largely depend on global macroeconomic trends, especially the U.S. government’s debt situation. Should central banks inject more liquidity to stabilize economies during periods of political instability, Ethereum may have the opportunity to revisit the $3,900 mark.