Does ETH Still Have Potential? These 5 Reasons Will Make It Clear

Question

The current discussion about whether Ethereum can rise in value is essentially questioning whether blockchain infrastructure actually holds value.

Many people treat ETH purely as a speculative asset, but the truth is: Ethereum processes daily transaction volumes worth billions of dollars—this isn’t just hype, it’s real economic activity.

Why is ETH Worth Bullish Attention? 5 Key Points

1. Ecosystem Lock-in Effect

There are thousands of applications on Ethereum, from DeFi to NFTs to gaming. Once developers and users move to another chain, the cost is too high—whether it’s rewriting code or migrating users. This switching cost is Ethereum’s moat.

2. Real World Asset Tokenization (RWA) is the Next Big Thing

The global bond market is worth $130 trillion, not including real estate and stocks. Once these traditional financial assets go on-chain, Ethereum is highly likely to be the main settlement layer. This isn’t just a dream—major institutions are already piloting it.

3. Institutional Buying Has Started

After the approval of the ETH spot ETF, institutions like pension funds and corporate treasuries have started allocating. This isn’t retail FOMO, but systematic demand. Even small allocations can bring huge buying power.

4. Layer 2 Really Solved Problems

L2 solutions like Arbitrum and Optimism have reduced costs by more than 10x, making it possible for micro-applications like gaming and social to run smoothly. With network congestion resolved, use cases expand, and ETH demand naturally increases.

5. Deflationary Mechanism is Working

After the switch to PoS, transaction fees are burned and staked ETH locks up supply. Under this double pressure, supply decreases while demand increases—this is the “deflationary spiral.”

Historical Data Speaks for Itself

ETH rose from less than $1 to $4,800, with each cycle accompanied by real application breakthroughs:

2017 ICO boom
2020-2021 DeFi explosion
2021 NFT frenzy

These aren’t repeated bubbles—they’re real progress in application layers.

When Will It Rise?

Professional analysis predicts that in the next 2-3 years, ETH could break through $5,000–$8,000, with aggressive scenarios even seeing $15,000+. The prerequisites are stable regulation, smooth technical upgrades, and continued institutional inflows.

Risks Can’t Be Ignored

🔴 Competing chains are advancing (Solana and other new public chains)
🔴 Sudden regulatory changes
🔴 Technical upgrade delays or bugs
🔴 Macro-economic downturn could cool all risk assets

How to Get In?

Long-term Investors: Dollar-cost averaging is key—don’t try to time the bottom. Buy in batches to average out costs.

Risk Management: Crypto allocation should not exceed 5-10% of your total assets. Set stop-loss and take-profit points.

Understand the Cycle: Stick to your holdings during bear markets, take some profits during bull market frenzies. Most people fail in bear markets, not at the bull market top.

In summary: Can ETH rise? Fundamentally, yes. When? Possibly in the next 2-3 years. But don’t treat it as a get-rich-quick tool—consider it an investment in long-term technological infrastructure.