Ethereum Below $3k: Low Fees, Weak Etf Flows Signal Stagnation Into...

Ether trades sideways as spot ETF outflows, weak bullish leverage demand, and low Ethereum network fees cap recovery prospects going into 2026.

ETH remains capped below $3,000 as repeated breakout failures weaken trader confidence and suppress short-term momentum.

A sustainable ETH rally will require stronger network activity and DApp demand to offset weak leverage and ETF flows.

Ether (ETH) has traded within a narrow 4% range for the past week, leading traders to question whether the $2,900 support level will hold. Repeated failures to break above $3,000 have coincided with a decline in Ethereum network fees and muted demand for Ether exchange-traded funds (ETFs).

This lack of conviction is also evident in ETH derivatives markets, prompting traders to reassess whether a sustainable recovery is still possible in the near term.

ETH monthly futures traded at a 3% annualized premium relative to spot markets on Tuesday, signalling extremely low demand for bullish leveraged positions.

Under neutral conditions, this premium typically exceeds 5% to compensate for the longer settlement period, but it has remained below that threshold for the past couple of weeks.

Part of the weak investor sentiment can be explained by falling Ethereum network fees, as traders anticipate lower demand for ETH.

More importantly, demand for competing blockchains focused on decentralized applications (DApps) has remained steady, leading investors to question why the Ethereum network has lagged.

Ethereum network fees declined by 26% from their baseline, even as the number of transactions increased by 10% over the period. At first glance, Ethereum activity has not faded. But a significant part of ETH’s price outlook depends on actual demand for blockchain processing.

Source: CoinTelegraph