Ethereum's current market performance may signal a new normal, with its L2 roadmap impacting value capture at the L1 level, according to Michael Nadeau, Founder of The DeFi Report. Nadeau suggests that Ethereum's strategic decisions during the last bull market affected its price performance, and the network could potentially outperform in future cycles if it focuses on scaling the layer one. Despite initial excitement, Ethereum's layer two solutions have yet to produce a breakout application, with user experience issues hindering broader adoption. Nadeau highlights the need for improved bridging between layer twos to enhance their effectiveness. Additionally, the market struggles with valuing Ethereum, reflecting investor sentiment and uncertainty about its role as a monetary asset and the fees generated by the network. Nadeau emphasizes that strategic adjustments in Ethereum's roadmap could lead to a positive shift in performance, with the potential for Ethereum to outperform in the next cycle if it successfully implements scaling strategies. Investors are closely monitoring these developments for signs of future performance shifts.