Ethereum EIP 7864, Layer 2 Shakeout, and $3,000 Rejection

Ethereum faced three parallel storylines this week, from a proposal backed by Vitalik Buterin to remove the smart contract size cap, to fresh signs that Layer 2 activity is clustering around a few major rollups. At the same time, charts showed ETH failing again near $3,000, with traders watching the $2,800 area as the next key zone.

Ethereum EIP 7864 Targets Contract Size Limit

Ethereum co founder Vitalik Buterin backed a proposal that would remove the network’s long standing smart contract size limit, according to reporting published late Dec. 23.

The proposal, known as EIP 7864, would scrap the current cap by changing how Ethereum stores and accesses contract code. That shift would let developers deploy larger and more complex contracts without splitting code across multiple contracts.

Supporters say the change aims to expand design options while still protecting the network from denial of service risks that the existing limit helps reduce.

Layer 2 Activity Concentrates Around Major Rollups

Meanwhile, Ethereum’s Layer 2 usage in 2025 kept clustering around a small group of rollups, as recent dashboards and research tracked daily activity across the scaling sector.

Base ranked among the leaders on several activity metrics, including transactions and user engagement, based on live tracking that compares rollups side by side. The same data shows a wide gap between the most used networks and the long tail of smaller rollups.

At the same time, multiple reports said many newer Layer 2 networks struggled to hold users once short term incentive programs faded. Research groups described “mercenary” activity rotating between chains, while value and usage stayed concentrated around a few established ecosystems, including Base and Arbitrum.

Ethereum Rejects $3,000 Again, Analyst Warns of $2,800 Test

Ethereum stayed capped below the $3,000 level again, as a TradingView ETH USDT daily chart from Binance showed price around $2,931 at the time of the snapshot. The session print showed ETH opening near $2,965, topping around $2,978, and dipping near $2,917 before closing lower on the day.

Ethereum USDT Daily Chart. Source: X

On X, market commentator Ted, who posts as @TedPillows, said ETH “keeps on getting rejected” from $3,000. He added that if ETH does not reclaim that level soon, he expects a move below the $2,800 zone.

The chart marked several overhead supply areas, including bands near $3,200 to $3,360 and a higher zone near $3,900. It also highlighted support regions around $2,800 and a lower band near $2,550, mapping the key levels traders have watched during the late 2025 consolidation.