Ethereum Layer-2 (L2) scaling solutions are running active social media campaigns amidst a 44% slump in Ethereum (ETH) price in the first quarter of 2025. Investors and analysts await the impact of these campaigns on ETH’s future price trajectory.
The Hype Around Ethereum and Lido
In a Monday X post, Uniswap Labs posted a snapshot of Ethereum L2s, tagged as 'one Ethereum.' Highlighted L2s include Optimism, Alchemy, Blast, Taiko, Mantle, Cyber, and Celo. Lido Finance, a protocol for liquid ETH staking, supported this initiative, stating: 'In ETH we trust.' The surge in LDO and UNI trading volumes suggests an upcoming rally, indicating a trend of Ethereum users migrating to layer-2 solutions.
Criticism of Q1 2025
Despite the L2 hype, Ethereum has faced criticism for its poor performance in Q1 2025. Geoff Kendrick, head of digital assets research at Standard Chartered Bank, called this a 'midlife crisis' for the blockchain. According to Cryptorank, ETH's value declined by over 44% in Q1 2025, contrasting with successful Q1 performances in 2024 and 2023, with price increases of 59.9% and 52.4%, respectively.
ETH Price Predictions for Q2
Ethereum erased earlier weekly gains, dropping below $1,900 on March 29. This followed nearly $165.3 million liquidation in long ETH positions on March 28. While the price stands at $1,842, analysts had previously predicted ETH could rally to $4,000. Analyst Ali Martinez foresaw a drop to $2,300 and a subsequent rebound to $4,000. Historically, Ethereum has shown strong Q2 performance.
As the market awaits further developments, participants watch closely to see if the L2 campaigns will impact the market and lead to an ETH price recovery.
