Renowned investor and TV personality Kevin O’Leary slammed Ethereum over its scalability issues and gas fees, sparking heated debate within the crypto community.
Ethereum Drops to $3,870 Amid Market Correction
As of October 17, 2025, Ethereum (ETH) is trading at around $3,870, reflecting a drop of approximately 3.92% from the previous session. In intraday trading, the highest price reached was $4,076.22, while the lowest touched $3,835.35.
The decline is part of a broader market correction that wiped out over $100 billion from the crypto market in just three hours.
O’Leary Slams Ethereum: “$1000 Toll Fee”
Canadian businessman and “Shark Tank” star Kevin O’Leary stated that Ethereum “breaks under pressure” when real usage increases. He pointed to network congestion and excessively high transaction fees, commenting sarcastically:
It’s like paying a $1000 toll fee to drive on a one-lane highway.
His remarks triggered an immediate reaction among Ethereum supporters and investors.
Ethereum Community Fires Back
Ethereum advocates were quick to refute O’Leary’s claims. According to them, actual gas fees for standard transactions average around $22 — far from the exaggerated $1000.
They emphasized that Ethereum’s Layer 1 network functions primarily as a secure settlement layer, not a mass-scale payment system for everyday users.
Adriano Feria, a vocal Ethereum supporter, stated:
Complaining about Ethereum fees is like saying airplane wheels are too small — you’re missing the entire point.
O’Leary Sticks with Bitcoin and Ethereum Only
Despite the criticism, O’Leary reaffirmed his focus solely on Bitcoin and Ethereum, excluding altcoins from his portfolio.
He explained that these two assets represent 90% of the exposure he seeks in the crypto space, and he believes in their long-term dominance.
Ethereum remains a leading blockchain platform for smart contracts, decentralized applications (dApps), and tokenized assets, despite current scalability challenges.
Ethereum Technical Analysis
Technical indicators point to weakness. The weekly RSI is trending below the 14-day EMA, a historically strong sell signal.
- Past patterns near the $4,100 level have preceded drops of 49% and 63%.
- ETH could fall to $2,500, a potential 37.5% drop from current levels if the trend repeats.
Still, the trendline around $3,500 may act as temporary support, potentially limiting the downside to 12.5% in the case of a moderate correction.
Conclusion
Kevin O’Leary’s comments reignited debate over Ethereum’s ability to handle growing real-world usage. Despite technical weaknesses and a market dip, Ethereum remains a cornerstone of the blockchain economy. Investors will be watching the $3,500 level and macroeconomic signals for ETH’s next move.
Frequently Asked Questions
Find answers to the most common questions below.
He criticized Ethereum for high transaction fees and poor scalability, comparing it to a “$1000 toll road.”
Supporters refuted his claims, citing real gas fees closer to $22 and positioning Ethereum as a secure settlement layer.
Analysts see potential support at $3,500, but if the bearish trend continues, ETH could drop to $2,500.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
