Ethereum is grappling with significant market challenges as its Layer-2 expansion strategy continues to divert activity from its primary blockchain. Bitcoin maximalist and JAN3 CEO Samson Mow has expressed concern over Ethereum's declining market performance, noting that the network's struggles are more severe than anticipated. Ethereum's price has been trading between $2,000 and $2,150, with its ETH/BTC ratio dropping to 0.027, highlighting a shift in investor sentiment towards Bitcoin. The network's aggressive Layer-2 expansion, involving platforms like Arbitrum and Optimism, has led to reduced demand for Ethereum's base-layer gas fees, a trend some critics label as "L2 cannibalism." Institutional investors are also feeling the pressure, with firms like BitMine Immersion Technologies facing substantial unrealized losses after acquiring Ethereum at higher prices. In response, Ethereum co-founder Vitalik Buterin has called for improvements in decentralization and infrastructure to bolster the network's resilience.