Ethereum is currently trading below critical resistance levels, experiencing significant selling pressure over recent weeks. Since falling below the $2,000 mark, its price has declined by over 21%, indicating growing uncertainty among short-term investors. This downturn has sparked debate, especially considering Ethereum's robust on-chain fundamentals.
Analyst Ted Pillows notes that ETH is trading near bear market lows, despite the network's strength. Ethereum processes over 95% of all stablecoin transactions and leads in Total Value Locked (TVL) across DeFi and Real World Asset (RWA) protocols. It is also the only altcoin with a spot ETF approved in the US, with upgrades planned to enhance speed and reduce transaction costs.
Despite these strengths, Ethereum's price remains suppressed, fueling speculation about market sentiment or manipulation. As Ethereum dominates the crypto utility narrative, long-term holders view the downturn as a strategic accumulation opportunity. Ethereum faces a critical test near major demand levels amid deepening macroeconomic uncertainty.
Global tensions, including trade disputes, contribute to market fears and drive investors away from high-risk assets like crypto. Ethereum, along with the broader crypto market, has suffered under this pressure, hovering just above bear market lows. Pillows emphasizes Ethereum's strong fundamentals as a reason for optimism despite technical weakness.
According to Pillows, Ethereum remains the backbone of the DeFi ecosystem, processing over 95% of stablecoin transactions. It also commands the highest TVL and leads in RWA tokenization, with a US-approved spot ETF adding institutional legitimacy. Pillows suggests Ethereum's current valuation could be a long-term buying opportunity, given upcoming protocol upgrades aimed at improving scalability and reducing costs.