Ethereum's price has struggled to exceed $3,500 since dropping below that threshold on January 7. Despite a 6% gain in the broader cryptocurrency market, Ether has dropped 8% over the past month. Key factors affecting Ether's performance include a surge in transaction fees and competition from blockchains like Solana, which recently saw high trading volumes in the new TRUMP memecoin. For Ether to recover, three major developments are crucial: the Pectra upgrade, which aims to enhance network interoperability; regulatory changes surrounding spot Ethereum ETF approvals; and growth in layer-2 solutions. The total value locked in Ethereum's layer-2 solutions has also decreased, highlighting intense competition from other networks. Institutional demand for Ethereum remains low, with no significant inflows recorded for Ethereum instruments since January 16. Until these conditions improve, Ether's price is likely to remain under 3,500.

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