Ethereum is currently hovering around $3,200, with factors such as diminished network usage and ongoing economic uncertainty in the United States limiting its potential rise towards $4,000.

Key Insights:

• Ethereump is facing a bearish trend due to decreased network activity and economic instability.
• Layer-2 solutions are driving the majority of Ethereum transactions, but lower-cost blockchain alternatives may hinder Ether from reaching the $4,000 mark in the near future.

Despite consistent upgrades and a strong hold on total value locked (TVL), Ethereum has struggled to maintain prices above $3,300 in recent weeks, creating concerns among traders regarding the sustainability of any future bullish trends. Notably, Ethereum’s performance closely ties to the overall cryptocurrency market’s health, indicating a broader sentiment affecting its valuation.

Moreover, trading activity on decentralized exchanges (DEX) has significantly dropped, impacting Ether’s price trajectory. While institutional interest remains evident, especially with a robust TVL, competitive networks are catching up, making it crucial for Ethereum to rejuvenate demand for its applications to restore momentum.

Market Analysis Source: Cointelegraph