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Ethereum Crashes 45% From $4,950 Peak: Why Layer 2s Are Killing ETH’s Value
Market Intelligence Analysis
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Why This Matters
Ethereum's price has crashed 45% from its peak due to a shift in activity to cheaper Layer 2 networks, resulting in lower fees and weaker burn pressure, which is negatively impacting the network's value.
Market Impact
Market impact analysis based on bearish sentiment with 84% confidence.
Sentiment
Bearish
AI Confidence
84%
Article Context
Note: This is a brief excerpt for context. Click below to read the full article on the original source.
Ethereum’s (CRYPTO: ETH) 45% crash from its $4,950 peak in August is more than a price correction. It reflects a deeper problem in how the network captures value now. Activity has shifted to cheaper, faster Layer 2 networks, leaving Ethereum’s mainnet with lower fees, weaker burn pressure, and fading institutional interest. The market isn’t reacting ... Ethereum Crashes 45% From $4,950 Peak: Why Layer 2s Are Killing ETH’s Value
Original article published by
Unknown
on December 3, 2025.
Analysis and insights provided by AnalystMarkets AI.
Analysis and insights provided by AnalystMarkets AI.