Ethereum's native token Ethereum (ETH) is up about 35% so far in 2023, but repeated attempts to break through the psychological resistance level of $2,000 have been met with strong bearish rejections. Here are three possible reasons why Ethereum price has failed to decisively regain $2,000.

First, Ethereum price depicts 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 has dampened demand for Ethereum, reducing its ability to decisively close above $2,000. The prevailing negative correlation between the top cryptocurrencies and the U.S. dollar is to blame. Meanwhile, Ethereum’s performance in 2023 has largely lagged behind Bitcoin’s due to continued spot Bitcoin ETF hype.

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. The decline in TVL coincides with a drop in the Ethereum network’s gas fees, which hit a yearly low on October 5.

To sum up, Ethereum price faced multiple pressures and failed to break through the psychological resistance level of $2,000. Investors need to pay close attention to market dynamics and make prudent decisions.