Ether Price Struggles Near $2.4K as Weak DApp Activity Slows Ethereum Momentum

Ethereum continued to face resistance near the $2,400 level as declining network activity and weaker institutional sentiment limited bullish momentum across the market. Despite several recovery attempts in recent months, Ether has failed to maintain a breakout above the key resistance zone.

Ethereum DApp Revenue and Trading Volume Decline

One of the biggest pressures on Ether remains the slowdown in decentralized application activity. Data from Defilama showed Ethereum decentralized exchange volumes dropped by more than 50% over the last six months, while DApp revenue declined nearly 49% during the same period.

The broader crypto sector also faced increased security concerns after several major protocol exploits. Industry losses from hacks reportedly reached $630 million in April, with KelpDAO and Drift Protocol accounting for a large share of the damage. Reduced trading activity and weaker memecoin demand also contributed to lower user engagement across Ethereum-based platforms.

Competition From Solana and Hyperliquid Intensifies

Ethereum is also facing stronger competition from rival blockchain networks. Solana and Hyperliquid together now account for roughly 42% of total DApp revenue market share, attracting users with faster and lower cost transactions.

At the same time, institutional confidence remains cautious. Bitmine, one of the largest publicly traded ETH holders, is reportedly holding billions in unrealized losses on its Ethereum reserves. Analysts believe declining on-chain activity and rising competition may continue limiting Ether’s upside potential in the near term.