TechFlow reports that on February 18, according to Forbes, analyst Callan Sarre stated Ethereum is currently in a “narrative vacuum,” leaving the market confused. Over the past several weeks, ETH’s price has been trading in a narrow range near $2,000.
Sarre noted that Ethereum’s core narrative over the past few years has been clear and straightforward: scaling is handled by Layer 2 networks, while the base layer remains lean, secure, and decentralized. This approach attracted substantial capital and developer activity; Layer 2 networks now process billions of dollars in transactions weekly, with transaction costs down over 90% compared to peak periods on the mainnet. However, market attention is now gradually shifting toward integrating zero-knowledge technology and privacy capabilities directly into the base layer itself—leaving traders who built models around the prior roadmap feeling unsettled. “Markets often price confusion before pricing clarity.”
He also pointed out that Ethereum’s fully transparent on-chain transaction records work well for crypto-native users, but pose clear limitations for institutions managing corporate funds or deploying large positions. The tension between transparency and real-world applicability remains unresolved.
