Ethereum's price surged 1.03% during Sunday's low-volatility session, reaching $2,438, recovering from selling pressure tied to geopolitical tensions between Israel and Iran. The decline in Layer 1 (L1) fees post-Dencun upgrade, due to the growth of Layer 2 (L2) solutions like Optimism and Arbitrum, has led to an inflationary phase for ETH, reversing its deflationary trend. Reduced fees burned and lower whale holdings suggest possible volatility ahead.

The ETH price has been consolidating above $2,200, forming a symmetrical triangle pattern. A breach below $2,200 could trigger a bearish move, delaying a potential $3K rally. However, if buyers regain momentum, Ethereum could rise 9%, aiming for a breakout and a $3,000 target. The price remains under the 50- and 200-day EMAs, supporting a bearish outlook unless momentum shifts.