Ethereum (ETH) price pinned below $2.2K — Here’s why

ETH struggles due to weakening network activity, a declining TVL, and investors’ concerns about its supply emission rate

Ether (ETH) price surged 14.2% after rebounding from the $2,000 support level on March 4 but has struggled to sustain levels $2,200. Notably, ETH has underperformed the broader cryptocurrency market by 11% over the past two weeks, reflecting investor uncertainty. To regain bullish momentum, key obstacles must be addressed.

Ether/USD (left) vs. Total Crypto Cap, USD (right). Source: TradingView / Cointelegraph

While it is difficult to pinpoint the exact reasons behind traders reducing ETH exposure, several factors likely contributed to weaker sentiment. These include declining onchain activity, a lower total value locked (TVL), a net positive ETH issuance rate, and speculation surrounding a potential US strategic digital asset reserve. Overall, demand for ETH as Ethereum’s native token appears weaker.

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