To see the prospects of Ethereum clearly, you need to extend the time horizon. Short-term fluctuations are too volatile and easily lead to震荡 (shakeout) and profit-taking, but from a fundamental perspective, there are several key supports worth关注 (attention).

First is the ecosystem moat. As the most mature smart contract platform, Ethereum has accumulated a large number of developers, applications, and tools. This creates a typical network effect: the more people use it, the more valuable the platform becomes; the more valuable the platform, the more people are attracted to use it. Even if latecomers have better performance, it’s difficult to break this ecological stickiness.

Second, Ethereum has evolved from a pure concept into a tangible application platform. You can see real use cases such as DeFi lending and trading, stablecoins, NFTs and on-chain credentials, on-chain gaming, and SocialFi operating smoothly. L2 networks like Optimism and Arbitrum are also expanding capacity, indicating that the underlying infrastructure is gradually improving.

The PoS transition (after Merge) has changed the economic model. Issuance has started to decline, and in some periods, even experienced deflation. Coupled with staking yields and burning mechanisms, it is more friendly to long-term holders. Although volatility remains high, the mechanism layer has become more mature.

From a regulatory perspective, the global distinction between different crypto assets is becoming clearer. Pure speculative coins and platforms with real applications are being redefined. Ethereum is easier to understand as an infrastructure and technology platform, which benefits relatively in institutional entry and compliant products.

Finally, the potential of RWA (Real World Asset on-chain). Government bonds, bills, and fund shares are beginning to be tokenized, and settlement and clearing systems are being tested. If this direction continues to advance, Ethereum has the opportunity to become the technical底层 (underlying layer) of traditional finance—not to replace banks, but to be adopted as a new type of database and settlement network. This is the true long-term story.