Ethereum: Neutral Outlook — L2 Adoption and Burn Rate Will Decide the Next Leg

I view Ethereum as a fundamentally solid network with durable on-chain demand drivers — smart contracts, DeFi and NFTs — and protocol features like EIP-1559 that can act as a structural supply tailwind.

Near term, price action will hinge on macro liquidity, ETF and institutional flows, and the pace of Layer‑2 adoption that reduces fees and increases utility. Regulatory uncertainty and scaling competition remain key risks to watch.

For now I remain neutral-to-cautious: I’ll watch burn dynamics, L2 volume trends and major macro events before increasing exposure.