Ethereum has been unable to reclaim the $4,000 level for weeks, as weak on-chain activity, falling fees, and growing competition from rival chains continue to pressure price performance. Over the past 30 days, Ethereum transactions have dropped 23% and active addresses are down 3%, while Tron, BNB Chain, and Solana have all recorded strong growth. With lower fees and smoother user experiences, these networks are pulling users away from Ethereum.
At the same time, the launch of the Solana ETF and the potential arrival of XRP, BNB, and ADA ETFs have raised concerns about capital rotation away from Ethereum — the same institutional inflows that previously fueled ETH’s 140% rally in 2024.
Ether’s 88% plunge in network fees has also reduced staking yields, increasing expectations around the Fusaka upgrade. However, it remains unclear how this upgrade will directly benefit ETH holders.
Meanwhile, ETH’s drop to $3,200 has pushed companies holding ETH reserves below their net asset value, reducing their incentive to issue new shares and accumulate more ETH.
In Summary
Ethereum’s return to a bullish trend and a move above $4,000 depends on four key factors:
higher network activity,
recovering fees,
clearer benefits from the Fusaka upgrade,
renewed institutional inflows.
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