Yeliz Akmaca 
Ethereum slipped under the 3,000-dollar level for the first time in four months, raising doubts about the strength of the broader bull cycle. The recent 40 percent pullback from August’s peak pushed traders to question whether the market still has enough momentum to sustain an uptrend. ETH continued to move in line with the altcoin market, showing the absence of a strong asset-specific catalyst in either direction.
ETH Pressure Driven by Macro Conditions
Concerns about global growth intensified in recent weeks. The risk of a US government shutdown, new import tariffs and weak consumer-sector earnings pressured sentiment. The artificial intelligence sector also faced rising energy and cost constraints, reducing appetite for tech-linked exposure.
Demand for leveraged ETH positions stayed weak for a month, keeping the futures premium below the neutral band. Companies accumulating ETH through equity or debt offerings saw their shares fall below net asset value, and this trend reduced investor interest in new financing while slowly diluting existing shareholders.
Drop in On-Chain Activity Added to Market Stress
Weaker activity on the network placed additional pressure on bullish expectations. Total Value Locked fell thirteen percent in thirty days to reach 74 billion dollars. Decentralized exchange volumes also declined noticeably during the same period. Ethereum remains the leading ecosystem, yet competition around trading activity became tougher as Solana and BNB Chain continued to attract flow.
Ethereum’s layer-2 landscape, however, expanded rapidly. Base, Arbitrum and Polygon eased congestion on the main chain and improved scalability. Lower base fees caused by rollups created debate, but the overall ecosystem got stronger. ETH kept its dominant position in real-world asset tokenization and decentralized stablecoin systems. Base processing more than 100 million transactions in a single week illustrates that momentum clearly.
What a Recovery Scenario Requires
A healthier outlook for Ethereum depends on easing global uncertainties. As the United States deals with a growing debt burden, central banks will likely need to inject liquidity to support economic conditions. If that shift begins, capital inflows into crypto may strengthen again and ETH could attempt a move back toward the 3,900-dollar zone.
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