Ethereum L2s Float Bullish Campaign After 44% Q1 Slump, What Next For ETH Price?

Ethereum Layer-2 (L2) scaling solutions are running bullish social media campaigns. These campaigns come amid a 44% slump in the Ethereum (ETH) price in the first quarter (Q1) of 2025.

Notably, Ethereum still exhibits a bearish momentum, below the $2,000 mark. Investors and market analysts now anticipate the impact of the recent Ethereum L2s campaigns on ETH’s future price trajectory.

The Uniswap and Lido Ethereum Hype

In a Monday X post, Uniswap Labs posted a snapshot of Ethereum L2s, tagging the picture “one Ethereum.”

Image Source: Uniswap on X

Uniswap spotlights some L2s, including Optimism, Alchemy, Blast, Taiko, Mantle, Cyber, and Celo. This post depicted that the Ethereum L2 scaling solutions are joining combined forces to hype the Ethereum network.

Acknowledging the post, Lido Finance, a protocol facilitating liquid Ethereum staking, commented, saying: “In ETH we trust”. Their bullish campaign alleviates traders’ and investors’ concerns about Ethereum’s latest price crash.

Surprisingly, LDO, UNI, and price surges in daily trading volume suggest a rally is around the corner. This surge highlights a growing trend of Ethereum users migrating toward layer-2 scaling solutions. Users are drawn by the promise of faster and cheaper transactions compared to Ethereum’s mainnet.

According to data from CoinMarketCap, LDO’s trading volume spiked by 19.9%, while UNI’s rose by over 56%.

Backlash on Ethereum Q1 Performance

Despite the L2 hype, many have criticized the Ethereum network for its poor performance in Q1 2025. Geoff Kendrick, Standard Chartered Bank’s head of digital assets research, labeled it a “midlife crisis” for the blockchain.

The altcoin has failed to catch up with other top cryptocurrencies this year. According to Cryptorank data, the value of ETH decreased by over 44% in Q1 2025.

With this decline, Ethereum falls short of its bullish Q1 expectation. Q1 is often the most successful quarter for the flagship altcoin by a large margin. In 2024 and 2023, the price of ETH saw increases of 59.9% and 52.4%, respectively.

Image Source: Cryptorank

In Q1 2024, Ethereum benefited from the growing excitement surrounding its decentralized finance ecosystem and the Non-Fungible Token (NFT) sector.

Due to the initial coin offering (ICO) frenzy, Ethereum also surged over 526% in Q1 2017. With no obvious bullish catalyst that could push the ETH price higher this time, investors are watching to see what is next for the altcoin in Q2.

ETH price of $4,000 possible in Q2?

Ethereum erased gains made earlier in the week, triggering widespread liquidations. On March 29, the price plunged below $1,900, raising concerns among market participants.

This decline follows the almost $165.3 million liquidation in long ETH positions on March 28. When writing, the ETH price was $1,842, down 11.6% over the past week. Markets predicted earlier this year that ETH could rally to $4,000.

Analyst Ali Martinez predicted that Ethereum would drop to $2,300 and rebound to $4,000. At the time of the forecast, Ethereum maintained a market capitalization of $332.3 billion.

With the market capitalization now down to $222.4 billion, whether the tides will turn in Q2 remains to be seen. However, Ethereum demonstrated a historic bullish performance in Q2, according to data from Cryptorank.