Ethereum sees an ‘unprecedented’ network boom

Ethereum’s activity history indicates strong participation in the network, but the price has yet to catch up.

Ethereum (ETH) entered Q2 2026 with a sharp 55% decline from its August 2025 high above $4,900, as macro pressures weigh on the price.

New data indicates that the unprecedented rise in the total number of conversions metric highlights that on-chain activity has reached peak levels.

Peak usage of Ethereum

Ethereum on-chain activity has occurred He came back to record levels, as the 7-day simple moving average of the total number of transfers rose back above 1.3 million, matching its previous peak seen in mid-February, according to CryptoQuant.

The rise in transfer activity indicates steady usage of the network, which means continued sharing across decentralized finance (DeFi) applications, Layer 2 ecosystems, and other smart contract operations. This trend indicates that the Ethereum network is being actively used rather than being held as a speculative asset.

At the same time, ETH price has remained relatively low as it continues to consolidate near the $2,100 level and is still trading well below its historical highs. This difference between increased network activity and muted price action indicates that the network’s underlying utility is expanding faster than its market valuation.

Moreover, the increase in transaction volume contributes to increased gas consumption, which in turn accelerates the burning of ETH under Ethereum’s fee burning mechanism. Such a process gradually reduces circulating supply and can contribute to long-term pressure on asset availability. The data essentially reveals a period in which network usage was strong despite relatively restrained price performance.

If high activity levels continue, CryptoQuant stated that the chances of ETH price eventually catching up to these strong on-chain fundamentals in the medium term remain very favorable.

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Target points for ETH

According to a previous analysis by Ali Martinez, Ethereum’s next rally may depend on reclaiming the $2,500 level, which he sees as a major catalyst for a new bullish phase. he It has been marked There are subtle signs of accumulation, especially with the $1,800 level continuing to hold as support. This area also corresponds to the 0.80 MVRV range near $1880, an area associated with market stress and potential bottoms as investors start accumulating.

However, if the current structure flips, the cryptocurrency assets risk a further decline, as $1,550 and $1,070 would be potential lower targets.

At the macro level, the ceasefire violation has increased market uncertainty. As such, analyst Ted pillows male The $2150-$2200 range is now an important support area to watch. If ETH can maintain this level, it could pave the way for another upward move. Losing this range may open the door to further declines.