Ethereum is experiencing a powerful rise in network activity, yet its market price has not responded in the same way.
Ethereum began the second quarter of 2026 down about 55 percent from its August 2025 peak above 4900 dollars, as broader macroeconomic pressures continue to weigh on its price. Despite this decline, new data shows that activity on the network has reached unprecedented levels, with the Total Transfer Count metric hitting record highs.
Ethereum Usage Reaches Record Levels
On chain activity across Ethereum has surged again. Data from CryptoQuant shows that the 7 day average of total transfers has climbed above 1.3 million, matching the previous peak recorded in mid February.
This increase reflects consistent usage of the network, driven by participation in decentralized finance applications, Layer 2 solutions, and other smart contract functions. It highlights that Ethereum is actively being used rather than simply held for speculation.
At the same time, ETH continues to trade around 2100 dollars, far below its all time highs. This gap between rising usage and relatively weak price performance suggests that the network’s real world utility is expanding faster than its market valuation.
Higher transaction activity also leads to increased gas fees, which contributes to more ETH being burned through the network’s fee burning mechanism. Over time, this reduces the circulating supply and may create upward pressure on availability. Overall, the data points to a period where strong usage is not yet reflected in price movement.
If this high level of activity continues, analysts at CryptoQuant believe there is a strong likelihood that Ethereum’s price will eventually align with its solid on chain fundamentals over the medium term.
Key Price Levels to Watch for Ethereum
According to earlier analysis by Ali Martinez, Ethereum’s next major rally could depend on reclaiming the 2500 dollar level, which he views as a key trigger for a bullish phase. He also noted early signs of accumulation, particularly as the 1800 dollar level continues to hold as support. This zone aligns with the 0.80 MVRV band near 1880 dollars, often associated with market stress and potential bottom formation.
However, if market conditions weaken, Ethereum could face further declines, with 1550 dollars and 1070 dollars acting as possible downside targets.
From a broader perspective, ongoing geopolitical uncertainty has added pressure to the market. Analyst Ted Pillows emphasized that the 2150 to 2200 dollar range is now a critical support zone. Holding this level could support another upward move, while losing it may lead to deeper corrections.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
