Key Takeaways:
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Ether is trading near $3,200 as weaker network usage and economic uncertainty within the US limit price appreciation.
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Layer 2 networks drive most Ethereum activity, but cheaper competing blockchains reduce the prospect of Ether recouping $4,000 soon.
The price of Ether (ETH) has repeatedly failed to keep up levels above $3,300 over the past 60 days, leading traders to query whether sustained bullish momentum continues to be achievable in 2026. Although the Ethereum network is rolling out major upgrades and maintaining its leading position in deposits, investors fear that the possibilities of reclaiming the $4,000 level remain slim.
Total cryptocurrency capitalization, USD (left) vs. ETH/USD (right). Source: Tradingview
Ether's performance since November closely tracks the broader cryptocurrency market cap. As a result, the dearth of optimism appears to be resulting from the general weaker usage of decentralized applications (DApps) relatively than specific issues with the Ethereum ecosystem. Regardless of whether traders' concerns stem from broader economic risks, the short-term upside potential for ETH price appears to be limited.
Ether tracks broader crypto market amid weaker application usage
Regardless of the aspects influencing bullish crypto investors, traders have shown less interest in DApps, which is reflected within the declining activity on decentralized exchanges (DEX). According to DefiLlama, total DEX volume over the past two weeks was $150.4 billion, down 55% from its all-time high of $340 billion in January 2025.
7-day Ethereum fees (left) vs. DEX volume (right), USD. Source: DefiLlama
Ethereum's 7-day DEX volume remained at nearly $9 billion after peaking at $27.8 billion in October 2025. This 65% drop sent Ethereum network fees down 87% to $2.6 million from $21.3 million three months ago. Nevertheless, the Ethereum ecosystem continues to dominate, holding around 50% of DEX activity when combining data from Base, Arbitrum, Polygon and other Layer 2 solutions.
Blockchains sorted by Total Value Locked, USD. Source: DefiLlama
Ethereum's lead in Total Value Locked (TVL) is robust evidence of institutional investor preference, at the same time as competitors akin to Tron, Solana and BNB Chain generate higher network fees. While some market participants argue that Ethereum has failed to completely monetize its dominance in smart contract deposits, this consequence is essentially intentional and stems from its rollups-based scalability strategy.
Blockchains sorted by 30 day fees, USD. Source: Nansen
The variety of transactions on Solana exceeds the overall variety of top 10 competitors, underscoring the network's dependence on intensive validation processes and a semi-centralized development structure led by Solana Labs. According to Nansen data, Ethereum processed 54.4 million transactions in a 30-day period, while its Layer 2 network Base recorded greater than 600 million transactions in the identical period.
Ether's two-month stretch trading below $3,200 has been particularly difficult for corporations which have taken on debt or equity to construct ETH reserves. Bitmine Immersion (BMNR US), for instance, currently holds $13.2 billion price of Ether, while its shares trade at a 9% discount to the worth of those holdings, in response to CoinGecko data.
It stays unclear what catalyst could shift the momentum back in ETH's favor, especially as competing networks provide comparable DApps and features for average users, often with less friction resulting from the scalability of the bottom layer. Ether's path back to $4,000 and above depends heavily on renewed demand for blockchain applications and broader risk appetite in cryptocurrencies amid ongoing uncertainty within the US economy.
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