Ethereum’s Return to $3,200 Fails to Ease Jitters…Falling Usage and Intensifying Competition Weigh

Despite Ethereum’s recent rebound to $3,200, some observers say conditions for further upside remain limited due to declining network usage and macroeconomic uncertainty.

According to a report by Cointelegraph on the 14th (local time), Ethereum (ETH) has recently been trading around $3,200 but has failed to establish itself above $3,300 over the past 60 days. Even as network upgrades continue, the market is placing low odds on a recovery to $4,000 in 2026.

Ethereum’s price action has moved in line with the broader cryptocurrency market capitalization since last November. Analysts say investor sentiment is being pressured less by ecosystem-specific issues and more by weakening usage across decentralized applications (DApps) and macroeconomic risks. In the near term, the upside appears likely to remain capped.

On-chain indicators are also signaling weakness. According to DefiLlama, total decentralized exchange (DEX) trading volume over the past two weeks came to about $150.4 billion, down 55% from the peak recorded in January 2025. Ethereum-based DEX volume has fallen about 65% from the October high last year, and network fees have also plunged about 87%.

Still, the ecosystem’s influence—including Layer 2 networks—remains significant. Combining Layer 2s such as Base, Arbitrum and Polygon, Ethereum accounts for roughly 50% of total DEX activity. By total value locked (TVL), Ethereum continues to lead Tron, Solana and BNB Chain, maintaining its appeal among institutional investors.

The rise of rival networks is a headwind. Solana is processing more transactions than the combined total of the top 10 blockchains by transaction count, offering users lower costs and faster execution. With functional differentiation weakening, analysts say Ethereum’s price recovery hinges on whether demand returns.

Markets are watching in the near term whether Ethereum can turn $3,200 into a support level. With uncertainty around the US economy lingering, the prevailing view is that a retest of $4,000 will take time unless risk appetite across cryptocurrencies rebounds.