Ethereum's Volatile Price Swing: Bull Trap or New Supercycle?

Ethereum has become a focal point in the crypto market due to its aggressive price swings and sharp fakeouts. The trend is far from boring, with dominance grinding, Layer-2 activity exploding, and narratives surrounding ETFs and upgrades pulling traders in while risk quietly ramps up.

The Layer-2 explosion is driving Ethereum's market dynamics, with Arbitrum, Optimism, Base, and other rollups pulling transactions off the mainnet and settling them back to Ethereum in batches. This shift sets up a multi-layer money machine, where mainnet turns into Ethereum's settlement layer, and L2s absorb chaos and spam.

The 'Ultrasound Money' thesis is evolving, with net supply now breathing with the market. The burn rate is activity-driven, and traders can use gas fees exploding and NFT/DeFi volumes heating up as a direct signal that ETH supply pressure is easing.