Ethereum (ETH) is facing a challenging market session today as price action struggles to regain significant bullish momentum. Despite the network's foundational role in the decentralized finance (DeFi) and NFT sectors, the price of ETH has faced resistance at key technical levels. Market observers point to a rotation of capital into high-performance Layer 2 scaling solutions and rival Layer 1 blockchains as a contributing factor to the current stagnation. However, on-chain data reveals that the total value locked (TVL) in the Ethereum ecosystem remains resilient, suggesting that the fundamental utility of the network is not diminishing even if the asset price is temporarily suppressed. Investors are seemingly in a holding pattern, awaiting regulatory clarity regarding potential spot Ethereum ETF approvals in major jurisdictions. Such an approval is widely viewed as a necessary catalyst to bridge the gap between institutional capital and the Ethereum ecosystem. Meanwhile, the network's deflationary mechanism continues to operate, burning a portion of transaction fees and reducing the overall supply, which provides a long-term bullish thesis for holders. Short-term traders should watch for increased volatility as options expiry dates approach, which could force a decisive move from the current trading range.