Ethereum stands at a strategic crossroads. While it has made significant technical progress, transitioning to Proof-of-Stake, reducing issuance, and scaling through rollups, these advances have brought tradeoffs: fragmented user experiences, weakened fee capture, and a loss of narrative clarity. In 2025, however, signs of renewed direction have emerged. The Pectra upgrade, Ethereum Foundation leadership changes, and growing institutional engagement reflect a shift toward rebalancing L1 and L2 priorities. Rather than choosing a single identity, Ethereum is working to build a cohesive, scalable foundation that can support multiple roles, settlement layer, execution environment, and monetary asset, while remaining credibly neutral and decentralized.