Ethereum Price Forecast as ARK Invest Analyst Exposes Why L2s Are “Bad Business” for ETH

Ethereum (ETH) price is down by 3.55% today to trade at $2,370 at the time of writing. The drop comes amid increased selling across the broader crypto market due to fear that the US Federal Reserve will hike interest rates.

ETH’s price decline also fails to mirror the growth of Robinhood Chain, which runs on Ethereum layer two network, Arbitrum. An ARK Invest analyst now says that layer two networks are not adding any value to Ethereum.

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Analyst Questions the Benefit of L2 Networks to ETH

The DEX volumes on Robinhood Chain have jumped from $480 million on August 20 to $1.44 billion at the time of writing. The DeFi TVL has also reached a record high of $758 million, per data from DeFiLlama.

A recent report by CoinGape also noted that Robinhood Chain recorded higher app revenue than Ethereum and Hyperliquid.

Despite Robinhood Chain posting this much growth, analyst Lorenzo Valente of ARK Invest says that Ethereum is getting less than 1% of the revenue that is coming from Robinhood Chain.

Lorenzo notes that on August 30, Robinhood Chain recorded $978,000 in revenue and Ethereum got only $155 of this, while Arbitrum received $108,000.

“Ethereum’s cut is a fixed-ish L1 data-posting cost, not a revenue share… the market is also slowly realizing it is an extremely bad business for Ethereum,” Valente noted.

Arkham also notes that Robinhood Chain is now generating a higher fee than Solana, Ethereum, and Base, as the number of transactions and DEX volumes rise.

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ETH Withdrawals Surge Amid Rising ETF Demand

CryptoQuant analyst CryptoonChain notes that an average of 25,178 ETH was withdrawn from Binance every day in August, suggesting that there was a decline in Ethereum selling pressure during the month.

The surging exchange outflows coincided with rising inflows to Ethereum ETFs. Data from SoSoValue shows that Ethereum ETFs have recorded 12 consecutive days of inflows.

On September 1, Ethereum ETFs also recorded $10 million in inflows despite concerns about the Fed hiking interest rates.

ETH ETFs also saw $1.85 billion in inflows in August 2026, with this being the highest monthly inflows by the ETFs since August 2025.

Ethereum Price Forecast as Analyst Targets $3,000

Ethereum price has created a rounded top pattern on the four-hour chart. This pattern supports a bearish future Ethereum price outlook because it suggests that some traders booked profits after the recent move to $2,500.

This rounded top pattern has a height of 5.22%. Hence, ETH could drop to $2,200 in the near term if it drops below the support of $2,380.

The RSI reading of 33 suggests that the momentum is favoring bears. The AO bars that are red and growing in length also show that the selling pressure is outpacing the buying pressure as Ethereum price edges lower.

Analyst Michael Van de Poppe also supports a bearish outlook in the near term, saying that ETH price could drop to $2,200, with that being a good entry point for long buyers.

However, the analyst notes that Ethereum price could recover to $3,000 if traders use the drop to $2,200 to enter new positions.