Ethereum continues to trade below the key $3,200 level, weighed down by sustained selling pressure and increasing macro uncertainty, and is struggling to regain momentum. Market sentiment has deteriorated significantly in recent weeks, with many analysts calling for a broader bear market.
From a structural perspective, ETH remains below several key technical levels that previously served as support, reinforcing the perception that downside risks still exist and bullish momentum remains fragile.
Beyond price trends, on-chain data is starting to support this cautious outlook. According to the CryptoQuant report by CryptoOnchain, Ethereum network activity has sharply shrunk, indicating a significant reduction in underlying demand. The seven-day simple moving average (SMA) of active addresses fell to 327,000, the lowest since May 2025.
This represents a significant pullback from previous cycle highs and suggests fewer users are actively interacting with the Ethereum network.
Historically, ETH’s sustained bullish trend has been supported by expanding network usage and increasing participation. A decline in current active addresses indicates a decline in network utility and is often associated with a decline in investor interest or the exit of short-term participants.
Ethereum network activity suggests cooling demand
According to a report by CryptoQuant, the current decline in Ethereum’s active addresses represents a sharp reversal from the peak of approximately 483,000 addresses recorded in August. Since this high, network participation has steadily weakened, highlighting a clear loss of momentum in on-chain activity.
This contraction closely mirrors Ethereum’s market performance over the same period. As active addresses declined, ETH price corrected significantly, dropping from cycle highs around $4,800 to the current $3,100 area.
A simultaneous decline in both price and network activity is an important signal. This signals a decline in demand for block space and points to the potential exit of retail traders and short-term participants who cause a spike in trading activity during strong bullish periods. When fewer users interact with a network, it often reflects less speculative interest and less demand for transactions.
In a healthy, sustainable bull market, rising prices are typically accompanied by expanding network usage, with active addresses tending to increase as adoption and participation increases. Current deviations from that pattern indicate a cooling of the ecosystem rather than an acceleration phase.
Keeping an eye on this indicator is essential for Ethereum to establish a permanent price reversal. A sustained recovery in active addresses will be one of the clearest early signals that demand is returning and the network is regaining its fundamental strength.
Ethereum weekly price structure marks a significant inflection point
Ethereum’s weekly chart highlights how the market is caught between long-term structural support and unresolved downward pressure. After peaking at around $4,800-$5,000 early in the cycle, ETH entered an extended correction phase that saw its price drop sharply. The subsequent rebound from the $1,500-$1,600 lows marked a clear recovery, but so far the rally has failed to translate into a sustained bullish trend.
Currently, ETH is trading near the $3,150 level, hovering around a major confluence zone. Price is interacting with the 100-week and 200-week moving averages, which serve as historically significant trend-defining levels. Although ETH has managed to regain its long-term moving average, it continues to struggle with follow-through above it, indicating reluctance among buyers at higher prices.
The structure from mid-2024 onwards resembles a broad consolidation rather than a definitive breakout. All attempts to move higher towards the $4,000-$4,500 range were met with strong selling pressure, resulting in lower weekly highs. Volume is also down compared to past impulsive rallies, suggesting that the conviction behind the recent pullback is weakening.
From a structural perspective, it is still important to maintain the $2,800-$3,000 area. As long as this zone holds, ETH will maintain constructive highs and lows compared to the 2022 bottom. However, failure to build acceptance above the moving averages leaves Ethereum vulnerable to an extended consolidation or another correction before a clearer trend emerges.
Featured image from ChatGPT, chart from TradingView.com
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