Ethereum ($ETH) Network Strength Continues Amid Price Stagnation with Layer 2 Expansion

While Ethereum (ETH)'s upward momentum has slowed, analysis suggests that the network's fundamental strength is actually being reinforced. Since May 13th, ETH has not broken through the $2,700 resistance line, but it has still maintained a solid trend, recording a 17% higher return compared to the overall cryptocurrency market over the past 30 days. In particular, the recovery of the Ethereum futures market and increased transactions through Layer 2 expansion are seen as indicating potential growth across the ecosystem. The active new transactions and user activities on Layer 2 are viewed positively, demonstrating increased network utilization. However, the overall market's declining interest in decentralized applications (DApps) continues to be an obstacle to ETH's rebound. Currently, the total value locked (TVL) in the entire blockchain ecosystem is $122 billion, which is approximately 43% lower than its peak in December 2021. This aligns with ETH's price remaining 48% below its all-time high of $4,870 recorded in October 2021. Some are concerned that amid expanding macroeconomic uncertainties like US interest rate policies, Ethereum might experience a correction after outperforming the broader market. However, market experts anticipate that the network's structural improvements and increased Layer 2 demand could potentially serve as a foundation for long-term price appreciation.