The price of Ether (ETH) has been struggling to maintain levels above $3,300 over the past 60 days, leading traders to question whether sustained bullish momentum is still achievable in 2026. Although the Ethereum network is rolling out major upgrades and maintaining its leading position in deposits, investors fear that the chances 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 lack of optimism appears to be due to the overall weaker usage of decentralized applications (DApps) rather 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 factors influencing bullish crypto investors, traders have shown less interest in DApps, which is reflected in 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 strong evidence of institutional investor preference, even as competitors such as Tron, Solana and BNB Chain generate higher network fees. While some market participants argue that Ethereum has failed to fully monetize its dominance in smart contract deposits, this outcome is largely intentional and stems from its rollups-based scalability strategy.
Competing blockchains and market trends
VanEck said policy clarity could make the first quarter a “risk-on” quarter
Blockchains sorted by 30 day fees, USD. Source: Nansen
The number of transactions on Solana exceeds the total number 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 more than 600 million transactions in the same period.
Ether’s two-month stretch trading below $3,200 has been particularly challenging for companies that have taken on debt or equity to build ETH reserves. Bitmine Immersion (BMNR US), for example, currently holds $13.2 billion worth of Ether, while its shares trade at a 9% discount to the value of those holdings, according to CoinGecko data.
It remains 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 due to the scalability of the base 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 in the US economy.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision. While we strive to provide accurate and up-to-date information, Cointelegraph does not guarantee the accuracy, completeness or reliability of the information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information. For more information, visit https://cointelegraph.com/news/eth-s-back-at-3-2k-will-traders-flip-the-level-from-resistance-to-support?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound
