- Ethereum is struggling around $1,580 due to reduced value accrual from its data availability roadmap, despite technical signs hinting at a breakout toward $2,000.
- While based rollups offer potential solutions, their lack of prioritization and rising exchange reserves may delay a price recovery.
Ethereum (ETH) is facing a pivotal moment. After falling nearly 50% over the past year, ETH is now trading between $1,580 and $1,600, weighed down by concerns over its data availability roadmap. The once-promising Dencun upgrade, implemented in March 2024, may have boosted scalability, but it also undercut ETH’s value accrual—a blow to its “ultrasound money” narrative.
Despite achieving a 16x scalability boost, Ethereum’s Layer 1 fee capture has weakened, with Layer 2 networks now settling for far less. This has allowed rival chains like Solana and BNB Chain to pull ahead in fee revenue, raising questions about ETH’s long-term market dominance.
Based Rollups Hold Promise, But Lack Urgency in Roadmap
Industry experts highlight based rollups as a potential lifeline. These innovative rollups contribute more fees to Ethereum while posting minimal data on-chain. Taiko, for instance, outperformed top L2s in ETH contributions over the past year.
However, Ethereum’s next major upgrades—Pectra in May and Fusaka in Q4—don’t prioritize these rollups. Without a focus on value accrual, ETH’s price recovery could be delayed, putting additional pressure on investor sentiment.
TheTug-of-War Between Bulls and Bears
From a technical standpoint, Ethereum is showing mixed signals. The RSI remains below neutral, and the MACD hints at waning bullish momentum. Exchange reserves are also climbing—over 368,000 ETH has been moved to exchanges in April—signaling potential sell-offs.
Yet, hope isn’t lost. Analysts see potential for a breakout if ETH can close above $1,670. A move past this resistance could ignite a rally toward $2,000, especially if ascending triangle patterns and short-term trendlines hold true.
Key levels to watch include the $1,450–$1,550 support zone and resistance at $1,670. A breakout or breakdown from these points could define Ethereum’s trajectory in the coming weeks.
Ethereum stands at a critical juncture. With technical indicators flashing both warning signs and hope, and structural challenges mounting, the next few weeks could be make-or-break for ETH. Will the bulls take charge—or will Ethereum cede more ground to faster-moving rivals?