Ethereum News Price Update

Ethereum Eyes $4,000+: Layer 2 Boom and Deflationary Upgrade Ignite Rally

by Crypto Hobby

Updated July 17, 2025

Silver Ethereum coin floats above glowing layered digital circuit platforms — A digital layer of digital assets below an Ethereum coin

Ethereum’s price momentum has accelerated in recent weeks, pushing the token above $3,100 as positive sentiment builds around a $4,000 target. Analysts now see further upside, driven by booming Layer 2 adoption and the deflationary impact of the EIP-1559 update, which together could propel ETH toward new all-time highs.

Key Takeaways

ETH is trading near $3,169, up 6% in 24 hours and surpassing Bitcoin’s recent gains.
Analyst Javon Marks forecasts targets of $4,000, $4,811 and eventually $8,500+.
Two catalysts—Layer 2 network growth and EIP-1559’s burn mechanism—underpin the bullish outlook.

Analysts Predict Aggressive Price Targets

Crypto strategist Javon Marks highlights Ethereum’s current resurgence and outlook:

“$ETH numbers say $4,000+ and ~$4,811. After $4,811, prep for $8,500+. This is merely ‘nothing.’”

Key price levels:

$4,000 – Short-term psychological barrier.
$4,811 – Next technical resistance.
$8,500+ – Long-term upside if momentum continues.

Marks emphasizes that as demand outpaces supply, these milestones are increasingly plausible, especially if network usage remains robust.

Layer 2 Adoption Fuels Network Growth

Ethereum’s Layer 2 scaling solutions—including Base, Arbitrum and Optimism—are experiencing a surge in activity. By offloading transactions from the main chain, these networks reduce fees and boost throughput, attracting new users and applications.

Benefits of Layer 2 expansion:

Lower Costs: Average L2 tx cost fell 49% in Q2 to $0.014.
Higher Throughput: Combined L2 transactions rose 13% in the quarter.
Improved User Experience: Faster confirmations and cheaper fees.

Metric	Q2 2025
Avg. L2 Transaction Cost	$0.014
Combined L2 Tx Growth	+13%
Cost Reduction vs. Q1	49%

As more dApps migrate to Layer 2, Ethereum’s utility and fee revenue could climb, reinforcing the token’s value proposition.

EIP-1559 And The Deflationary Dynamic

Since the London hard fork introduced EIP-1559, a portion of each transaction fee is burned, effectively reducing ETH’s circulating supply. This scarcity mechanism has turned ETH into a deflationary asset whenever network activity is high.

Impact of EIP-1559:

Supply Reduction: Millions of ETH have been burned to date.
Rarity Premium: Investors are willing to pay more for an asset with declining supply.
Policy Alignment: The upgrade aligns incentives for holders and network security.

Combined with Layer 2 adoption, the deflationary pressure from EIP-1559 strengthens the case for sustained price appreciation.

In summary, Ethereum’s trajectory toward $4,000 and beyond hinges on continued Layer 2 growth and the ongoing supply constraints imposed by the burn mechanism. Should these catalysts persist, ETH may well set its sights on new record highs.