- Quinn Thompson calls Ethereum “completely dead,” citing declining users, fees, and transaction activity.
- ETH price fell to $1,883.81 from $4,000 in December; 2025 forecast cut from $10K to $4K.
- Nic Carter blames Layer-2 networks for draining Ethereum’s value and weakening its main chain.
Ethereum is facing doubts about its future as an investment, with Lekker Capital founder Quinn Thompson going as far as calling it “completely dead.” He pointed to Ethereum’s falling transaction activity, weak user growth, and declining revenues as major red flags.
A $225 billion market cap network that is seeing declines in transaction activity, user growth, and fees/revenues. There is no investment case here. As a network with utility? Yes. As an investment? Absolutely not,” Thompson stated in a March 28 post on X.
Ethereum’s struggles come despite previous predictions of a $10,000 price target by 2025. Just a few months ago, ETH had reached $4,000 in December, the same time Bitcoin hit $100,000 for the first time. However, the broader crypto market downturn has since taken a toll, dragging Ether’s price down.
At the time of writing, Ethereum is trading at $1,883.81, reflecting a 1.88% drop in the past 24 hours and a 5.17% decline over the last seven days, according to CoinMarketCap. This downward trend has sparked concern among analysts and investors.
L2 Networks Draining Ethereum’s Value
Castle Island Ventures partner Nic Carter blames Ethereum’s downfall on layer-2 networks, accusing them of “siphoning value” from the main blockchain. He believes these secondary networks are starving Ether of transaction fees and economic activity, leaving it weaker.
The #1 cause of this is greedy Eth L2s siphoning value from the L1 and the social consensus that excess token creation was A-OK,” Carter wrote on X.
His criticism goes further, stating that Ethereum’s downfall was self-inflicted due to excessive token creation. “ETH was buried in an avalanche of its own tokens. Died by its own hand,” he added.
Adding to the bearish outlook, Standard Chartered adjusted its price forecast for Ether, slashing its end-of-2025 prediction from $10,000 to $4,000—a sharp 60% reduction. This revision underscores the growing uncertainty surrounding Ether’s ability to recover.
Is ETH’s Top-Tier Status Over?
Trader Crypto Bull X sees an even bleaker scenario, claiming Ethereum looks “absolutely dead.” He points to broken support levels, a weak ETH/Bitcoin chart, and a failure to hold key moving averages as signs of an extended downtrend.
He suggests that Ethereum’s long reign as a top-tier crypto asset may be coming to an end. “ETH has been a top-2 crypto since 2016, the ‘crypto silver’ and the driver of altseason. The year 2025 may be the final one for it,” he warned.
While some traders fear Ether’s position is slipping, others argue that this downturn is temporary. CryptoELITES, a bullish trader, believes this is a historic buying opportunity. He labels the recent price action around $1,913 as the “bottom”, pointing to a rounded-bottom pattern that could set the stage for a powerful parabolic rally.
The trader identifies key resistance zones at $4,000 and $5,000—historically difficult levels for ETH. If these barriers are broken, the next targets jump to $7,000, $9,500, $12,000, and ultimately $15,000—a potential 7x surge from current prices.
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