ALONE _ TRADER 18

Ethereum price started a recovery wave above $2,000. $ETH is now consolidating and remain at risk of another decline below $1,980.

Ethereum struggled to extend gains above $2,120 and corrected lower.
The price is trading below $2,050 and the 100-hourly Simple Moving Average.
There is a contracting triangle forming with resistance at $2,040 on the hourly chart of $ETH /USD (data feed via Kraken).
The pair could start a fresh decline if it stays below the $2,120 zone.
Ethereum Price Dips Again
Ethereum price managed to form a base above $1,950 and started a recovery wave, like Bitcoin. $ETH price traded above the $1,980 and $2,020 resistance levels.

The pair even spiked above $2,140. A high was formed at $2,168, and the price is now moving lower. There was a drop below $2,050. The price tested the 38.2% Fib retracement level of the upward move from the $1,745 swing low to the $2,168 high.

Ethereum price is now trading below $2,050 and the 100-hourly Simple Moving Average. If the bulls remain in action above $2,000, the price could attempt another increase. Immediate resistance is seen near the $2,050 level. There is also a contracting triangle forming with resistance at $2,040 on the hourly chart of $ETH /USD.

The first key resistance is near the $2,065 level. The next major resistance is near the $2,120 level. A clear move above the $2,120 resistance might send the price toward the $2,165 resistance. An upside break above the $2,165 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,250 resistance zone or even $2,280 in the near term.

Another Drop In $ETH ?
If Ethereum fails to clear the $2,065 resistance, it could start a fresh decline. Initial support on the downside is near the $2,000 level. The first major support sits near the $1,950 zone or the 50% Fib retracement level of the upward move from the $1,745 swing low to the $2,168 high.

A clear move below the $1,950 support might push the price toward the $1,900 support. Any more losses might send the price toward the $1,850 region. The main support could be $1,820.

Technical Indicators

Hourly MACD – The MACD for $ETH /USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for $ETH /USD is now below the 50 zone.

Major Support Level – $2,000

Major Resistance Level – $2,065
$ETH

Gas Costs Plummet 99% as Fusaka Doubles Network Capacity
ENS registration costs have collapsed from approximately $5 in gas fees a year ago to under 5 cents currently, driven by Ethereum's gas limit expansion from 30 million to 60 million in 2025. The protocol now projects that subsidizing every single transaction at current rates would cost roughly $10,000 annually, substantially less than operating dedicated L2 infrastructure.

The economic calculus shifted decisively following January's Fusaka upgrade, which doubled Ethereum's gas limit. Core developers are now targeting 200 million gas limits by 2026, representing a 3x increase from current capacity before any zero-knowledge proof upgrades materialize.

"When we started planning ENSv2 and Namechain two years ago, the decision to build our own L2 felt inevitable," the protocol stated in its official blog post. "Ethereum L1 was prohibitively expensive for most users, with gas prices regularly spiking to levels that made even basic ENS transactions cost tens of dollars."
L1 Security Guarantees Outweigh L2 Tradeoffs
The protocol acknowledged that Namechain would have introduced additional trust assumptions compared to Ethereum's base layer, including upgradability vectors and centralized block production through preconfers. With transaction costs no longer prohibitive, these compromises became unjustifiable for infrastructure handling millions of domain names.
L1 Security Guarantees Outweigh L2 Tradeoffs
The protocol acknowledged that Namechain would have introduced additional trust assumptions compared to Ethereum's base layer, including upgradability vectors and centralized block production through preconfers.