Ethereum Network Activity Reaches New Highs
Entering 2026, the Ethereum network has demonstrated unprecedented activity. Data shows that in February 2026, Ethereum's daily active addresses approached 2 million, a figure that even surpassed the peak during the 2021 bull market. On January 15, 2026, Ethereum's daily transaction volume surged to 2.8 million, setting a new historical high, a 125% increase compared to the same period last year. Additionally, in February 2026, daily smart contract calls exceeded 40 million, and token transfer volume also reached a new high. As of April 2026, Ethereum's 7-day average transaction volume remained around 1.3 million, on par with its annual high. These increases are primarily attributed to the influx of new participants and the growing maturity of the decentralized finance (DeFi) ecosystem.
ETH Price Performance Remains Subdued
In stark contrast to the strong network activity, the price of Ethereum's native token, ETH, continues to face pressure. ETH reached an all-time high of approximately $4,953 in August 2025. However, the price has been on a downward trend since then. In March 2026, ETH traded at around $2,100, a drop of over 60% from its historical high. As of June 8, 2026, the price further declined to approximately $1,660, about 66% below its all-time high. On June 30, 2026, the ETH price fell another 7% in a week, with a monthly decline of nearly 22%, trading at around $1,587. As of the publication date on September 16, 2026, ETH's market price is approximately $2,407.82, still well below its historical peak.
Analysis of Reasons for Fundamental-Price Divergence
The significant divergence between Ethereum network activity and ETH price is a current market focus. Multiple factors have collectively contributed to this phenomenon:
Impact of Layer 2 Scaling Solutions
Layer 2 (L2) scaling networks such as Arbitrum, Optimism, and Base are attracting millions of users. These L2 networks allow users to interact with Ethereum's security layer without directly paying the high gas fees of the Ethereum mainnet (L1). While this has greatly increased the overall utilization of the Ethereum ecosystem, it has also suppressed L1 fee revenue, which was historically closely tied to ETH's price. After the Dencun upgrade, most activity shifted to L2 networks, leading to a reduction in ETH burning on the main chain, causing ETH's supply to become slightly inflationary again and weakening its "ultrasound money" narrative.
Market Sell-Off Pressure
Selling pressure on ETH has also been exacerbated by large market participants reducing their holdings. For example, trading firms like Wintermute actively reduced their ETH holdings, selling approximately 40% of their positions within three weeks. Additionally, in August 2025, US-listed Ethereum ETFs recorded net outflows of approximately $578 million, and BlackRock also sold over $220 million worth of ETH. In one week in June 2026, whales sold nearly 550,000 ETH, valued at approximately $880 million, further pushing ETH below key support levels.
Macroeconomic Headwinds
The global macroeconomic environment poses general pressure on the cryptocurrency market. Anticipated interest rate hikes by the Bank of Japan (BOJ) and policy shifts by the Federal Reserve have prompted investors to exit high-risk crypto assets. In 2026, persistent inflation, tariff uncertainties, and high interest rates led to a general aversion among investors to speculative bets. ETH prices often correlate with tech stocks, and when the stock market fluctuates, ETH typically declines as well.
Weakened Institutional Demand and Comparison with Bitcoin
Despite the continuous development of the Ethereum ecosystem, institutional demand for ETH has weakened. When market sentiment is cautious, traders tend to sell riskier assets first. As a more volatile asset, ETH typically experiences a greater impact than Bitcoin. In 2026, ETH fell by approximately 32%, while Bitcoin fell by about 11%, leading the ETH/BTC ratio to approach 0.027, its lowest point in a year. Unlike Bitcoin, which benefits from large corporate treasuries quietly buying and holding, ETH lacks buyers of this scale to absorb supply.
Technical Signals
From a technical analysis perspective, a "death cross" pattern formed on Ethereum's daily chart in 2026, which has historically been considered a signal of sustained bearish momentum.
Market Outlook and Optimistic Views
Despite multiple challenges, there are still optimistic expectations for Ethereum's future in the market:
- Tom Lee, Chairman of Bitmine, believes that the recent decline in ETH price is unrelated to fundamentals but rather a "window dressing" strategy by fund managers to reduce exposure to underperforming assets at quarter-end. He points out that Wall Street's increasing shift towards blockchain infrastructure and the rise of AI-driven payment systems will continue to enhance Ethereum's future value.
- A CryptoQuant report shows that the rate of ETH withdrawal from exchanges has reached an all-time high, meaning a reduced supply available for sale. Even smaller buying waves could have a greater impact on the price.
- Nick Ruck, Director of LVRG Research, believes that strong on-chain fundamentals, continuous ETF inflows, and growing ecosystem optimism position Ethereum to break through current resistance levels in the short term.
Trading and Acquiring ETH
As one of the leading cryptocurrencies by market capitalization, ETH can be traded on numerous mainstream cryptocurrency exchanges. Users can trade on platforms that support the coin, such as Binance, OKX, Coinbase Exchange, Gate, Pionex, and others. Please ensure you choose compliant and reputable platforms and be aware of the volatility risks in the cryptocurrency market.
The platform information for sale in the article changes with the listing and delisting dynamics of each exchange. Please refer to the official announcements of the exchanges.
