Ethereum Crashes 45% From $4,950 Peak: Why Layer 2s Are Killing ETH’s Value

• Ethereum (ETH) dropped 45% from $4,950 successful August to astir $2,900 by December arsenic Layer 2 networks drained mainnet activity.

• Ethereum ETFs saw $1.4B successful outflows during November 2025, the largest monthly exit since motorboat successful July 2024.

• Layer 2 networks present grip astir Ethereum transactions but sequencer gross flows to rollups alternatively of ETH holders.

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Ethereum's (CRYPTO: ETH) 45% clang from its $4,950 highest successful August is much than a terms correction. It reflects a deeper occupation successful however the web captures worth now. Activity has shifted to cheaper, faster Layer 2 networks, leaving Ethereum's mainnet with little fees, weaker pain pressure, and fading organization interest.

The marketplace isn't reacting to a azygous daze anymore. It's responding to a structural alteration successful however Ethereum gets used, who benefits from that usage, and however overmuch economical worth inactive flows backmost to ETH holders.

Ethereum fell from astir $4,950 successful precocious August to astir $2,900 by aboriginal December, marking a 45% diminution implicit 5 months. The driblet happened successful stages alternatively than each astatine once.

September brought prices down to the $4,500-$4,700 range, past October pushed them little to astir $4,100 arsenic buyers couldn't support cardinal enactment levels. Each effort to bounce backmost got weaker than the 1 before.

By the extremity of October, ETH had fallen to $4,100, and the selling continued into November. The terms dropped beneath $3,700 and couldn't ascent backmost supra $3,900 arsenic liquidity dried up crossed large exchanges. The sharpest diminution came successful mid-November erstwhile ETH fell to astir $2,700 earlier recovering somewhat to astir $3,000 by December 3.

Throughout these 5 months, the illustration shows a marketplace losing momentum and facing thinner bids arsenic Layer 2 migration picked up speed. Buyers stepped back, measurement declined, and each rally effort ran into selling unit earlier making meaningful progress.

Ethereum's diminution reflects problems that spell deeper than mean marketplace cycles. User enactment has moved elsewhere, fees person collapsed, and institutions are starting to question whether ETH tin inactive seizure worth from the ecosystem it helped build.

Layer 2 networks present grip astir Ethereum activity, which means the mainnet processes less fee-generating transactions. Lower state prices pb to weaker pain rates, cutting into the deflation communicative that erstwhile attracted investors.