ETH recovery and new ATHs is simple. The sexy yields from Tradfi instruments are about to end and ETH yield will become much more sexier.
Nothing sexy about staking (vs doing actual work), and no such thing as "free money" in this world, sad to have to tell you...
Diminishing Returns on Security - The addition of more and more validators in terms of security provides marginal benefit decreases, while the costs as a result of the ETH issuance continue to rise.
Increased Costs for Validators - As we see more staking occur (chasing that "sexy yield"), the operational costs, hardware upkeep etc also rise. These costs ultimately are born by users, and will make the network more expensive to maintain over time.
Centralization Risks - With large entities or staking pools controlling significant portions of staked ETH the risk of centralization obviously increases. This will compromise the very decentralization that Ethereum pretends to have.
Dilution and Inflation - Worst of all (for those wanting "number go up". It is actually all an illusion, just like how people believe a stock become more valuable because the company has done a stock split. Excessive issuance of new ETH to reward validators will obviously leads to inflation, which dilutes the value of existing ETH holdings. Ands this is of course EXACTLY why we are seeing the value of ETH decline to BTC over time.
