According to CryptoPotato, Ethereum's recent lackluster price movement led to many calling it an 'ETH death' as rivals Solana and Avalanche skyrocketed. However, crypto analyst 'Metaquant' observed that the fourth quarter layer-1 rotation was similar to that in 2021. Solana and Avalanche are now slowing down after weeks of upward price action, and the analyst noted that ETH is flowing out of centralized exchanges, and activity on the network is slowly increasing compared to the past weeks. "The rotation from alt L1s to ETH has started – ETH on-chain season is heating up."
In the past ten days, AVAX and SOL have cooled down after their huge runs, while ETH went sideways without showing signs of weakness. The analyst believes that the next run will likely be on ETH and its ecosystem. Additionally, the activity on Ethereum and layer-2 networks has been growing steadily for months. Total value locked across the L2 ecosystem hit an all-time high of $21 billion on Jan. 4, according to L2beat. Daily active addresses, layer-2 fees, and layer-2 stablecoin market capitalization have also been steadily increasing. The analyst predicts that once the price goes up, everyone will move again on ETH and L2s. "Note how there is no bull run without an ETH on-chain season. So, it’s a matter of time before this starts to happen."
Furthermore, embattled crypto lender Celsius has announced that it is unstaking ETH to return to creditors. While this may cause some short-term volatility if they sell, it has been viewed as a positive for Ethereum markets without the vampirical cloud of Celsius and its huge ETH bags hanging over them. ETH prices have remained flat on the day at $2,242 at the time of writing. However, the asset is down 8% from its weekly high of $2,434 on Dec. 2 as markets cool. Ethereum has been consolidating at current levels for the past month. Analysts have been mulling potential price peaks for ETH this year, with some seeing it hitting $10,000 quite easily, which is only double its all-time high in the last cycle, in which it made a $4,800 gain from trough to peak.
