Despite a surge in Ethereum on-chain activity, Ethereum’s price continues to move sideways, highlighting the growing disconnect between the network’s fundamentals and short-term market performance.
summary
- CryptoQuant data shows that active addresses on Ethereum have reached near-record levels, indicating increased participation across DeFi, stablecoins, and smart contract interactions.
- Despite mixed price performance in recent weeks, increased on-chain usage suggests that Ethereum’s fundamentals are strengthening.
- $ETH is trading near $2,020, with $2,207 (50-day SMA) as the next resistance level, while $1,950 to $2,000 remains a key support zone for traders.
According to CryptoQuant analysis, the number of active Ethereum ($ETH) addresses have risen to the highest levels in the network’s history, indicating increased participation in the overall ecosystem.
The increase in active addresses suggests growing usage in key sectors such as decentralized finance (DeFi), stablecoins, and automated smart contract activities. These segments often experience frequent on-chain transactions, which can result in increased address activity even during periods of relatively low prices.
This data shows that network penetration continues to grow despite mixed market sentiment, and analysts often view this divergence as a positive long-term signal.
The increase in activity may reflect increased demand for block space and applications built on Ethereum, which could strengthen the blockchain’s fundamental prospects over time.
However, Ethereum price has not yet fully reflected the growing on-chain momentum.
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Ethereum price analysis
According to the attached price chart, Ethereum is currently trading around $2,020.
Ethereum price analysis | Source: Crypto.News
The asset remains below its 50-day simple moving average near $2,207, which is currently the main resistance. A decisive move above this level could signal a short-term momentum change and open the door to a retest of the $2,200-$2,300 zone.
On the downside, Ethereum appears to have established short-term support around $1,950-$2,000, a range that buyers have repeatedly intervened in following the sharp decline seen in early February.
Momentum indicators suggest that the market is still in a correction phase. The Bull Bear Power (BBP) indicator on the chart has recently turned slightly positive after a long period of negative readings, suggesting that bearish pressure may be gradually weakening.
If Ethereum manages to maintain the psychological level of $2,000, traders may start to focus on the possibility of a retrieval of the 50-day moving average.
Conversely, a break below the support could expose the market to a new test at $1,900.
Taken together, the current setting highlights a striking contrast. Ethereum network activity is ramping up rapidly, while the price continues to hold firm, with traders watching closely to see if increased adoption ultimately translates into upward price momentum.
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