Analyst: Ethereum is currently in a vacuum period of narrative transition

Deep Tide TechFlow News, February 18 — According to Forbes, analyst Callan Sarre stated that Ethereum is currently in a “vacuum of narrative,” leaving the market confused. Over the past few weeks, ETH prices have remained narrowly fluctuating around $2,000.

Sarre pointed out that the core narrative of Ethereum has been clear and straightforward in recent years — scalability is handled by layer-two networks, while the base layer remains streamlined, secure, and decentralized. This approach has attracted significant capital and developers, with layer-two networks currently processing billions of dollars in transactions weekly, and transaction costs have dropped over 90% from their peak on the mainnet. However, market focus is gradually shifting toward integrating zero-knowledge technology and privacy capabilities directly into the base layer, which makes traders who built models based on the old roadmap feel uncomfortable. “Markets tend to price confusion first, then clarity.”

He also noted that Ethereum’s current 100% transparent on-chain transaction records work well for native crypto users, but for managing corporate funds or deploying large-scale positions, this feature has obvious limitations. The tension between transparency and practical application remains to be addressed.