Ethereum News Today: Ethereum's Price Soars, But Network Revenue Hits a 4-Year Low

A recent analysis by Messari has raised concerns about the long-term sustainability of the Ethereum network, despite its impressive price performance this quarter. According to AJC, a researcher at Messari, the network's total revenue in August stood at just $39.2 million, a 75% drop compared to the same month in 2023 and a 30% decline from August 2024. This marks the lowest revenue since January 2021 and highlights a potential disconnect between Ethereum’s price rally and its operational health [1].

The Ethereum network has seen a 73% surge in price since the beginning of the third quarter of 2025, making it the best-performing quarter for the second-largest cryptocurrency since its inception [1]. However, this rise has not translated into higher network revenue or usage metrics. AJC has criticized widely cited metrics such as active addresses and transaction throughput as "meaningless statistics," arguing that they do not reflect real-world demand or utility. He further noted that while stablecoin supply is significant, it does not benefit Ethereum unless transaction velocity increases. Additionally, Layer-2 (L2) scaling solutions, a key focus for Ethereum, may have limited impact if there is no marginal user demand for new L2 networks [1].

The divergence in investor sentiment is also evident in the recent performance of Ethereum ETFs. While Ethereum ETFs attracted $3.87 billion in inflows in August, September has seen a reversal, with Ethereum products losing $135.3 million in net outflows on September 3 alone [2]. By contrast, Bitcoin ETFs recorded a net inflow of $301.3 million during the same period, signaling a shift in institutional and retail interest. BlackRock’s ETHA fund, the largest Ethereum ETF, has seen a significant outflow of $151.9 million, marking a sharp contrast to the $1.5 billion in inflows during the preceding five-day period in August [2]. Analysts have observed that Ethereum historically faces challenges in September, with outflows during the same period in 2024 totaling $46.5 million.

Despite the ETF outflows, Ethereum’s on-chain activity still reflects strong institutional interest. Whale and institutional investors have continued to accumulate large quantities of ETH, with recent data showing over $620 million in Ether being scooped up by large holders [2]. This activity suggests sustained confidence in Ethereum’s long-term potential, particularly as it continues to dominate the DeFi space with over $90 billion in total value locked and leads the stablecoin ecosystem with $150 billion in circulation [3]. Additionally, upcoming scaling upgrades and increased adoption of Layer-2 solutions may further solidify Ethereum’s role as the backbone of blockchain finance.

Technical analysis also indicates that Ethereum remains in a critical consolidation phase, with key resistance at $4,500 and support at $4,200. Ethereum has struggled to break above $4,400, and long-term holders have begun taking profits, as seen in the LTH Net Unrealized Profit and Loss ratio and the Coin Days Destroyed indicator [3]. If Ethereum can successfully defend the $4,200 support level, it could trigger another breakout attempt toward $4,500. Conversely, a breakdown below this level could expose further downside risks. Analysts project that if Ethereum manages to break above $4,550 and holds that level as support, it could see a move toward $5,800–$6,000 by the end of the year, with some models suggesting potential upside as high as $7,000 if ETF inflows and whale accumulation continue [3].

The Ethereum network’s performance and broader market dynamics remain closely watched as investors evaluate its long-term viability. While price and technical indicators suggest a resilient asset, the diverging views within the analytics community and the shifting ETF flows underscore the ongoing debate over Ethereum’s future. As the market continues to evolve, the balance between price action, network activity, and institutional investment will be key to determining Ethereum’s trajectory.

Source:

[1] Ethereum Is Dying, Researcher Says (https://u.today/ethereum-is-dying-researcher-says)

[2] Ethereum ETFs Bleed Amid $301M BTC Inflow, Yet Whales... (https://finance.yahoo.com/news/ethereum-etfs-bleed-amid-301m-210041289.html)

[3] Ethereum Price Forecast – Can $4,500 Breakout Unlock... (https://www.tradingnews.com/news/ethereum-price-forecast-next-move-hinges-on-4500-usd)