Ethereum News: Analyst Predicts $1,200 Price Target Amid Bearish Sentiment and Concerns Over Layer-2s and Token Inflation

Ethereum, the second-largest cryptocurrency by market capitalization, has seen its market sentiment turn bearish in recent weeks, with a prominent analyst predicting a significant price drop. Read on to learn more about the current market dynamics and the factors influencing Ethereum’s price movements.

Ethereum Breakdown: Analyst Eyes $1,200 Price Target

Following a period of intense price consolidation, the Ethereum (ETH) market experienced a bearish trading week with a damning rejection at the $2,100 price level, which has emerged as a major resistance zone. A prominent market expert, Cryptododo7, via technical analysis, hinted that the ETH market sentiment is currently bearish, suggesting a major downside in the coming weeks.

VC Blames Layer-2s and Token Inflation for Ether’s Waning Investment Appeal

Ether (ETH), the second-largest cryptocurrency by market capitalization, is facing increasing criticism from some investors and analysts who question its long-term investment appeal. Crypto venture capitalist Nic Carter of Castle Island Ventures pointed to two key issues undermining Ether’s value: the rise of layer-2 (L2) scaling networks and unchecked token issuance. Carter argued that “greedy ETH L2s” are siphoning off value from Ethereum’s base layer while giving little back, and criticized the Ethereum community’s acceptance of excessive token creation, claiming that “ETH was buried in an Avalanche of its own tokens. Died by its own hand.”

Aave Implements Chainlink SVR to Recapture Oracle MEV on Ethereum

Aave Protocol, a decentralized, open-source, and non-custodial liquidity protocol, has collaborated with Chainlink and BGD Labs to implement Chainlink Smart Value Recapture (SVR) on Ethereum Mainnet. This initiative aims to improve the recapture of Miner Extractable Value (MEV) related to oracles, enhancing protocol revenue and supporting economic sustainability. Chainlink SVR is officially live on mainnet, with Aave being the first user.

Ethereum Drops to $1,874: Are Bears Pushing for a Breakdown?

Ethereum has dropped to $1,874, testing a key support level as selling pressure intensifies across the broader crypto market. With prices inching dangerously close to critical liquidation thresholds around $1,805, analysts warn that a sharper correction could be on the horizon. This downturn places $238 million worth of ETH at risk, as two major MakerDAO whales face potential liquidation. The latest ETH sell-off is also testing the resilience of highly Leveraged DeFi positions. Traders are closely watching whether bulls can defend current levels or if bears are preparing to force a deeper breakdown.