The price of ETH is still hovering around the $4000 mark.

A new face of the bull market.

The future of Ethereum

Ethereum faced a series of controversies and discussions related to ecological development in the middle of this year. With the rise of Solana, both new and old public chains are starting to attract Ethereum's developers and user base, and the ecosystem is beginning to shake, as Ethereum seems to have forgotten its original goal. As the first blockchain to create smart contracts, Ethereum successfully got major institutional investors on board in the last cycle through its first-mover advantage. Whether it is DeFi, blockchain games, NFTs, or the metaverse, they all cannot escape the Ethereum ecosystem, and its original intent of being a 'world computer' has deeply resonated.

Although the liquidity fundamentals of Ethereum have shown optimistic improvements, from Ethereum's own perspective, its daily transaction count, gas fees, active address count, and other on-chain data indicators have not seen significant growth. This indicates that the on-chain activity of Ethereum has not increased in sync with its price, and block space remains in excess.

In the past few years, Ethereum's focus has been on building the infrastructure for cryptocurrencies, providing a large amount of cheap block space for the market. This initiative has improved Dapp's access performance to blocks and reduced the transaction costs of L2 expansion solutions. However, due to insufficient market liquidity and low trading demand, Ethereum's vast block space has not been fully utilized.

However, from a long-term perspective, this is not a real problem. As mentioned earlier, institutional funds are gradually returning, even starting to create dedicated blockchain use cases. For Ethereum, which possesses security and flexible architecture, the B2B aspect is its strength. It not only has an overwhelming advantage in security but also can accommodate numerous EVM projects, providing developers with an option that is almost 'impossible to be laid off'.

At the beginning of December, Ethereum researcher Jon Charbonneau wrote a long article analyzing why Ethereum needs a clearer 'North Star' goal, suggesting that Ethereum's ecological strength be focused on the 'world computer' aspect, similar to Bitcoin's 'digital gold' and Solana's 'on-chain Nasdaq'.

Ten years have passed, and Ethereum is no longer in its startup phase; the future of Ethereum is already clear for the next decade.

A correction around $3850 support can be taken for a long position.