In December 2024, ETH plummeted from $4,000 to $1,400 with almost no significant rebound, dropping over 65%. This sharp decline was accompanied by a comprehensive capitulation sell-off by traders and early whales, with market chips undergoing a dramatic reshuffling in panic. The ETH/BTC exchange rate simultaneously fell back to a low of 0.018, nearly returning to the starting point of the 2019 bull market.
At the same position, can ETH replicate the same trend in this round?
Just as most people have lost confidence in Ethereum, a structural transformation is quietly brewing. Policy boundaries are becoming clear, institutional capital is flowing back, the Ethereum Foundation is self-correcting, on-chain data is showing divergence, and industry narratives are refocusing. ETH may be preparing for a structural reevaluation.
Policy Tailwind: Crypto Regulatory Framework Emerging from Uncertainty
At the macro level, crypto assets are gradually moving out of the gray area. Key legislative processes like the GENIUS Act and CLARITY Act have made breakthroughs, and the SEC is discussing establishing an exemption framework for DeFi. The regulatory approach to the crypto industry is shifting from rejection to acceptance, from suppression to "limited encouragement".
As the foundation of DeFi, and the core settlement layer for stablecoins and Non-Fungible Tokens, Ethereum may be the most direct beneficiary of this policy tailwind, with its compliance process naturally embedded in the entire industry framework. When the regulatory environment becomes clearer, the first to be reevaluated by institutions will undoubtedly be Ethereum, with its "orthodox infrastructure" background.
[Translation continues in the same manner for the entire text]ConsenSys CEO: Ethereum Layer 1 Will Become the Global Main Ledger
ConsenSys CEO and Ethereum co-founder Joseph Lubin wrote: "Ethereum Layer 1 will become the global main ledger. It allows anyone to view, use, and add data or functions without permission, possessing trusted neutrality and censorship resistance. It has tamper-proof and verifiably tampered characteristics (achieved through confiscation mechanisms and transparency), and continuously advances its decentralization process. It has a top-tier massive community that always remains highly vigilant because there will always be patient and well-resourced participants trying to disrupt the system. Fortunately, as Ethereum develops and matures, the difficulty of disrupting the system will become increasingly greater."
Conclusion: ETH, This Time It's Really Different
Every rebuilding of faith has always begun at the market's coldest moment. After experiencing a sharp decline, its chip structure has become sparse, and any marginal capital entry could trigger a price bounce. Currently, its price may still be oscillating, but its value has been quietly transforming.
ETH, perhaps has truly returned.
