Can Ethereum avoid a breakdown as momentum weakens near $2,100?

Ethereum is trading in a tight range around $2,116, with recent price action showing little conviction in either direction.

Over the last 24 hours, ETH has slipped slightly by about 0.2%, while the broader trend remains weaker.

It has declined by about 9.2% over the past 14 days, and by close to 8.7% over the past 30 days.

Notably, the cryptocurrency is trading far from its all-time peak of nearly $4,946, a drop of more than 57%.

Price action over the past several weeks has remained mostly sideways between approximately $2,025 and $2,151, showing that momentum has not yet shifted decisively in either direction.

Bearish rounded top pattern forms as momentum weakens

Ethereum’s short-term chart structure has started to show signs of fatigue after its earlier recovery attempts.

Technical analysis shows a rounded top formation, a pattern that often develops when buying pressure gradually fades after a rally.

In this case, Ethereum’s repeated inability to sustain moves above the $2,150–$2,200 zone has reinforced that view.

Instead of breaking higher with strength, price action has drifted sideways, followed by mild declines.

This type of pattern typically reflects distribution, where market participants gradually reduce exposure rather than aggressively selling all at once.

If this pattern continues to develop, traders often watch for breakdowns below nearby support zones around the $2,050–$2,070 range, which has recently acted as a short-term floor.

A failure to hold this area would increase the probability of deeper downside continuation, especially given the absence of strong upside momentum.

Strong stablecoin dominance highlights underlying demand

While price action has weakened, Ethereum continues to maintain a strong position in the broader crypto financial system.

According to data from Dune Analytics, roughly 55% of global stablecoin supply is still issued on Ethereum, making it the dominant settlement layer for dollar-backed digital assets.

The total stablecoin market is estimated at more than USD 320 billion (approx. $466.3 billion), with Ethereum hosting the largest share at around USD 187.1 billion (approx. $272.7 billion) in circulation across its ecosystem.

This level of activity shows that Ethereum remains deeply embedded in crypto liquidity flows, even during periods of price stagnation.

A growing share of this activity is also shifting toward Ethereum layer-2 networks, where transaction costs are lower and throughput is higher.

While this reduces activity on the main chain itself, it still reinforces Ethereum’s role as the base settlement layer beneath a wider scaling structure.

This stablecoin dominance contrasts sharply with recent price performance, highlighting a divergence between network usage and market valuation.

Ethereum Foundation narrows focus and reduces ETH sales

On the governance side, the Ethereum Foundation has signalled a shift toward a more focused operational model.

In a recent X post, Vitalik Buterin emphasised that the foundation is moving away from broad ecosystem expansion and concentrating on core protocol priorities such as security, censorship resistance, and privacy.

As part of this shift, the foundation is also expected to reduce ETH sales, a move aimed at limiting structural selling pressure over time.

While the foundation’s holdings are small relative to the total market, its actions are often closely watched due to their symbolic impact on long-term alignment.

The foundation is also positioning itself as less central to Ethereum’s ecosystem development, with more responsibility shifting toward independent teams and external contributors.