1. $ETH Core Values and Technical Features of Ethereum
Positioning as a World Computer
The essence of Ethereum is a decentralized 'world computer' that achieves trustless automated execution through smart contracts. Its core value lies in supporting programmable blockchain applications (DApps), such as the automatically executed 'hot pot treat' contract.
Advantages of Technical Architecture
The Ethereum Virtual Machine (EVM) provides Turing-complete programming capabilities, supporting complex logic. Compared to Bitcoin's UTXO model, its account model is more suitable for financial applications. The 2025 Fusaka upgrade significantly enhances network scalability by increasing block gas limits and utilizing PeerDAS technology.
Ecosystem and Application Scenarios
As a Web3 operating system, Ethereum supports the core ecosystem of DeFi, NFTs, DAOs, and more. Search results mention its demand for on-chain stablecoins, real estate, and other real-world assets (RWA). Data from 2025 shows that there are over 60,000 tokens on Ethereum.
II. Market Performance and Key Dynamics
Price Fluctuations and Support Levels
As of December 7, 2025, the price of Ethereum is $3,056, with a 24-hour drop of 1.15%.
$3,000 is a key psychological support level; if it can hold steady, it may break through $3,400.
Institutional accumulation (e.g., BlackRock's 44,000 ETH) provides long-term support, but in the short term, it faces pressure from STH profit-taking.
The ETH/BTC trading pair tested the 0.03440 satoshi support level; if broken, it may outperform Bitcoin.
Institutional Holdings and Market Confidence
BitMine increased its holdings by nearly $200 million in ETH (approximately 3.73 million coins) during the price downturn, becoming the largest single holder.
Yunfeng Financial (associated with Jack Ma) purchased 10,000 ETH for $300 million as a strategic reserve.
Although institutional enthusiasm is not as strong as Bitcoin, long-term allocation value is recognized.
Competitive Pressure and Alternatives
Facing competition from high-performance public chains like Solana and Sui, some developers are turning to Layer 2 solutions (such as Polygon). However, Ethereum maintains its lead due to its mature ecosystem and security record.
III. Future Directions
Technical Upgrade Path
After the Fusaka upgrade, Ethereum is advancing sharding technology and Layer 2 expansion, aiming to increase TPS to 100,000.
The upgrade on December 3, 2025, introduced PeerDAS (Peer Delay Attack Defense), enhancing network security.
Macroeconomic and Regulatory Risks
The US Genius Act promotes stablecoin development, and Ethereum may become the primary carrying chain.
Countries like China are tightening cryptocurrency regulations, which may affect institutional investment enthusiasm.
Long-term Value Logic
Ethereum's inflation rate is extremely low (approximately 0.5% per year), with scarcity similar to digital gold.
Ethereum spot ETFs are expected to be approved in 2026, accelerating traditional capital inflow.
As a 'blockchain smartphone,' its value lies in the application ecosystem rather than purely monetary attributes.
IV. Investment Recommendations
Short-term (3 months): Focus on confirming the $3,000 support level; if it falls below $2,950, caution is advised.
Mid-term (6 months): The trend of institutional accumulation may support prices, but caution is required regarding STH sell-offs.
Long-term (2 years): Ecosystem expansion and Layer 2 maturation may drive value reassessment, target price $4,000-$5,000.
Ethereum is currently at the crossroads of technical upgrades and market confidence. Its core advantage lies in the irreplaceable network effect of its ecosystem, but it must address high gas fees and scalability issues. Investors need to balance short-term volatility risks with long-term narrative value.
