Ethereum Reaches Record Activity But ETH is Declining

Ethereum Network Reaches Record Levels

The Ethereum network has reached record levels in active addresses, token transfers, and smart contract calls according to CryptoQuant data. In February, active addresses exceeded 1,1 million, doubling the previous year. In March, token transfers surpassed 1 million, rising from the 750 thousand level in December. These data reflect growth in DeFi, stablecoins, automated protocols, and layer-2 ecosystems.

Ethereum realized cap 1-year change. Source: CryptoQuant

Rise in Active Addresses and Token Transfers

The 100% increase in active addresses shows an expanding user base. Token transfers exceeded 1 million in March, while USDC usage reached all-time highs according to Token Terminal. Lisk Research Head Leon Waidmann explains these data with the explosion in the stablecoin ecosystem. Tools like Layer-2 solutions and ETH detailed analysis optimize this traffic.

Peak in Smart Contract Calls

Smart contract and automated protocol transfers also broke records. This indicates heavy usage of DeFi protocols (Uniswap, Aave) and NFT markets. Daily call numbers increased 50%, while gas fees stayed low on layer-2s, boosting accessibility. Technically, EVM-compatible chains handle this load, but mainnet congestion continues.

ETH Price and Adoption Paradox

However, ETH price has fallen 60% from its peak and is consolidating at 2.010,71 USD (24h change: -1,99%). RSI at 47,22 is neutral, with downtrend dominant at EMA 20: 2.016,78. Network activity does not trigger Ether demand; this "adoption paradox" shows transactional growth not supporting the price. ETH futures also give bearish signals.

Negative Turn in Realized Market Value

CryptoQuant Research Head Julio Moreno emphasized that Ethereum's realized market value annual change has turned negative. Capital is exiting Ether; price dynamics are influenced by capital flows, not network activity. The broader market lost 2 trillion USD with a 44% drop from the October peak. This implies fewer HODLers and increasing profit-taking.

ETH Technical Analysis: Support and Resistance Levels

Supertrend bearish signal stands out. Here are the critical levels:

S1 is strong support; if broken, S2 could be tested. Investors should watch for R1 breakout.