Recently, the price of Ethereum’s native token Ethereum (ETH) has repeatedly attempted to break through the psychological resistance level of $2,000, but has been strongly bearishly rejected. Analysts believe that this is mainly due to the following three reasons:

First, Ethereum price exhibits a bear cycle fractal. Ethereum’s inability to break above $2,000 in 2023 is similar to the bearish rejection near $425 in 2018-2019. In both cases, Ethereum appears to be in a recovery phase while closing above the 0.236 Fibonacci line on the Fibonacci retracement chart.

Second, a stronger U.S. dollar dampens demand for Ethereum. In recent months, a stronger US dollar has reduced Ethereum’s ability to decisively close above $2,000. Especially in 2023, the weekly correlation coefficient between Ethereum and the US Dollar Index (DXY) has been negative.

Finally, Ethereum network activity dropped. The total value locked (TVL) of the Ethereum ecosystem has dropped from 18.41 million ETH to 12.79 million ETH in 2023. This highlights the reduced availability of funds, leading to lower yields for investors. Meanwhile, Ethereum’s NFT transaction volume and unique active wallets have also dropped by 30% and 16.5% respectively in the past 30 days.

To sum up, the price of Ethereum is facing multiple pressures, and it will be difficult to break through $2,000 in the short term.