@wallisdinm
Ethereum's (ETH) price over the next three months depends on Layer 2 adoption, gas fees, and network activity. Since the Shanghai upgrade, Layer 2 solutions like Arbitrum and Optimism have gained traction, reducing mainnet congestion.
Key factors:
Gas Fees: Lower fees may indicate higher Layer 2 adoption but could reduce ETH burn, affecting supply dynamics.
Network Activity: Rising transactions and DeFi activity could boost demand.
If Layer 2 adoption continues growing, mainnet gas fees may stay low, potentially slowing ETH deflation. However, increased network usage (e.g., staking, DeFi, NFTs) could counterbalance this.
Price Outlook:
Bullish case: Strong on-chain activity and ETH staking demand push prices up.
Bearish case: Lower gas fees reduce ETH burn, weakening bullish momentum.
Overall, moderate bullish bias if activity remains strong.
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