What to know:
- Ethereum active addresses hit record levels with 3.64M weekly users.
- ETH supply on exchanges drops to a 10-year low amid strong outflows.
- Price structure remains bearish despite short-term stabilization signs.
Ethereum is showing a sharp rise in network participation, even as price action remains under pressure. Data shared by Leon Waidmann on March 26 highlights that weekly active addresses on the Ethereum mainnet have reached 3.64 million, marking the highest level ever recorded.
Source: X
This reflects a steady increase in user engagement, with activity growing 97% over the past year and adding another 13% in just four weeks.
The other large networks are also busy, but they’re still behind Ethereum. Other large networks include Polygon PoS, which had 2.84 million; Base, which had 1.99 million; and Arbitrum, which had 785,000.
Meanwhile, data on exchanges shared by Quinten reveals that the supply is tightening. Ethereum held on exchanges is now at a record low since 2016, or essentially the entire existence of the network.
Source: X
This is a sign of ongoing outflows over the last few months, including a large one-day movement of $1.67 billion worth of ETH being withdrawn from exchanges on March 22.
The steady outflows indicate that investors are not looking to sell and therefore are moving to long-term storage.
Also Read: Ethereum Price Recovery Sparks Optimism Amid $33 Billion L2 Stabilization
Ethereum Enters Distribution Phase After Range Breakdown
Despite significant on-chain activity, price action in the short term is quite different. The Composite Trader indicates that current chart formations indicate transitioning from a stable range to a distribution phase. Initially, Ethereum was in a range where supply and demand were balanced.
This phase allowed the money to accumulate on both sides of the market, preparing for the bigger move. The next phase had a minor breakout above the highs of the range. However, there was not much movement on the breakout, and it reversed quickly.
Source: X
Instead of looking like a strong move, it looked like a liquidity grab, with the orders being filled and then the price reversing sharply. This is usually the exit of the big players at the higher prices.
Once the breakout did not succeed, it returned to the old range and began making lower highs and lower lows. This is an indicator that the price is losing steam in its up move.
The price is testing a major demand area in the middle of the range, but it is still weak. The weak buying response indicates that selling is stronger than buying.
Bearish Trend Holds as Key Levels Come Into Focus
As per the analysis from Tradingview on March 26, on the daily chart, Ethereum is trading below all the large moving averages, such as the 20, 50, 100, and 200 EMAs.
This indicates the downtrend. The latest decline around the price range of $2,190 to $2,200 suggests that the bears are active, even when the price is rising.
The price range has formed between $1,800 and $2,300, with a low price of $1,747. This may be a sign of a base formation; however, there has not been a breakout.
Source: Tradingview
If the support levels around $2,000 to $2,050 are broken, Ethereum may fall to $1,800 or even $1,750. The momentum indicators are neutral. The RSI is below neutral, indicating slight bearish pressure. The MACD shows weakening momentum.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Ethereum Price Prediction 2026-2032: Will ETH Reach $5,000 Soon?
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