Key points to remember:
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Ethereum reached 16.4 million weekly transactions, proving that fees can stay below $0.20 during high demand.
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Decentralized trading volume in the Ethereum ecosystem reached $26.8 billion, signaling a return of investor interest.
Ether (ETH) saw a 15.9% price correction over the seven days ending Sunday. This volatility triggered liquidations of $910 million in bullish positions in leveraged ETH, fueling fears that the $2,800 support level, which has held firm for two months, could eventually break. Despite this drop in trader confidence, several on-chain and derivatives metrics suggest a potential near-term rebound up to $3,300.
Base layer fees are key in determining demand for a native token, followed closely by growth in transaction volume and active addresses. Although Ethereum has been criticized for prioritizing scalability via rollups, this strategy is paying off as activity on Base, Polygon, Arbitrum, and Optimism gains momentum.
Ethereum network fees jumped 19% over the past week, while competitors Tron and Solana saw declines from their recent trends. More importantly, the total number of transactions on Ethereum Layer 2 jumped to 128 million, surpassing the totals of BNB Chain and Tron. This suggests that the Ethereum ecosystem can scale effectively without sacrificing its core utility.
Decentralized exchange (DEX) activity is a leading indicator of capital inflows and network fees. While demand for trading perpetual contracts peaked in August 2025 and has declined since, the trend is moving back towards Ethereum. This is largely due to the drop in average transaction fees to $0.20 from $0.50 in November 2025.
Weekly DEX volumes on Ethereum reached $13 billion, up from $8.15 billion four weeks ago. Although Solana remains the leader with $30 billion in weekly volume, the total Ethereum ecosystem has reached $26.8 billion. The Fusaka upgrade in December 2025 significantly increased the network’s data capacity and introduced batch transaction workflows, significantly improving the user experience.
Ethereum Dominance Persists Even As Professional Traders Go Neutral
Ethereum’s dominance in total value locked (TVL) remains strong evidence of investors’ preference for decentralization, even as BNB Chain and Solana struggle to capture more market share.
Professional traders return to a neutral position between call (purchase) and put (sell) options after a brief period of hedging against further losses. Contrary to the belief that whales anticipate every move, peak put volume occurred after ETH fell below $2,800.
The put-to-call volume ratio of ETH options at Deribit was neutralized between Monday and Tuesday, after five days favoring puts. Notably, Sunday’s 2x spike marked the highest level in over four months. Confidence appears to be returning as traders realize that the risks associated with a U.S. government funding shutdown have had a limited impact on the market.
Related: Bitmine’s staked Ether holdings indicate $164 million in annual staking revenue
The weakness in ether prices contrasts with the S&P 500 trading within 0.5% of its all-time high, while five-year U.S. Treasury yields have stabilized near 3.85%. Investors remain cautious about the risks of inflation and recession; the CME FedWatch tool shows that the probability that the US Federal Reserve will cut rates to 3.25% or lower by July has fallen to 28%, from 55% last month.
Ultimately, Ether’s path toward $3,200 will likely be driven by sustained DEX activity, rising network fees, and the disappearance of the uncertainty recently seen in the options markets.
