1. Positive aspects:

• Improved regulatory environment: Changes in the US regulatory environment are crucial to the development of Ethereum. If the Trump administration is friendly to cryptocurrencies and promotes improvements in relevant regulatory policies, it will bring a more favorable development environment for Ethereum. This may lower the entry barriers for companies and investors, attract more institutions to participate in the Ethereum ecosystem, increase capital inflows and liquidity in the market, and thus drive up the price of ETH.

• Network upgrade promotion: In 2025, the Ethereum network will usher in a series of important upgrades, such as Pectra upgrade, sharding, EIP-4844 Proto-Danksharding, etc. These upgrades will improve Ethereum's transaction processing capabilities, scalability and security, and improve user experience. For example, the Pectra upgrade will increase the maximum effective balance of validators and reduce network pressure; sharding technology will split the Ethereum network horizontally and greatly increase network throughput; the Rollup technology introduced by EIP-4844 can package and process a large number of transactions, further enhancing scalability.

• Mainstream Trends Driving Growth: Ethereum occupies a dominant market share in cutting-edge fields such as stablecoins, tokenization, and AI agents. As these areas develop rapidly, they will bring more application scenarios and demand for Ethereum. The widespread use of stablecoins relies on blockchain platforms like Ethereum, the trading and management of tokenized assets depend on Ethereum's smart contract functionality, and the integration of AI agents with Ethereum is expected to give rise to new decentralized applications. All of these will promote the prosperity of Ethereum's ecosystem, thereby enhancing the value of ETH.

• Increased Interest from Institutional Investors: Based on trends from 2024, institutional investors' interest in Ethereum is steadily rising, with increased capital inflow into Ethereum ETFs. If this trend continues in 2025, it will provide more funding support and market recognition for ETH. The participation of institutional investors typically brings a more stable market and a longer-term investment perspective, contributing to the healthy development of the Ethereum market.

2. Negative Aspects:

• Increased Competitive Pressure: Ethereum is facing fierce competition from other blockchain platforms. For example, platforms such as Solana and Sui have certain advantages in terms of transaction speed and fees, attracting more users and developers in 2024. If these competing projects continue to expand their advantages in 2025, they may divert Ethereum's market share and funds, putting pressure on the price of ETH.

• Macroeconomic Uncertainty: Uncertainty in the global macroeconomic situation still exists and may impact Ethereum's development. If issues such as economic recession or inflation worsen, investors' risk appetite may decline, leading to funds flowing out of the cryptocurrency market and causing the price of ETH to drop. Additionally, changes in the macroeconomic environment may affect regulatory policies, bringing uncertainty to Ethereum's development.

• Technical Risks and Security Issues: Blockchain technology still carries certain technical risks and security vulnerabilities, and Ethereum is no exception. Issues such as smart contract vulnerabilities and network attacks may lead to the loss of user assets, affecting Ethereum's reputation and market confidence. If significant technical failures or security incidents occur in 2025, it will adversely impact Ethereum's development.