Ethereum is demonstrating strength on two key fronts simultaneously. On-chain activity has surged to unprecedented levels, indicating robust real-world usage of the network, while the long-term technical structure favors further upward momentum. Together, these signals suggest Ethereum’s current phase may be more than just consolidation, as fundamental data points to sustained demand and constructive price action.
Ethereum Daily Transactions Hit a New Peak
Ethereum’s price has been trending upward steadily in recent days. Importantly, on-chain data reveals this rise is accompanied by consistently high network activity. Recent figures show daily transactions have climbed to roughly 2.8 million, setting a new all-time high for Ethereum.
This record is notable because it represents an increase of approximately 64% compared to the daily transaction levels seen during the peak of the 2021 bull market. Chart data illustrates a steady rise in Ethereum’s transaction count over the years, with a significant spike in early 2026.
The comparison to 2021 is particularly telling, given the intense activity Ethereum experienced during that period’s altcoin season and NFT boom, which drove both transaction volume and prices to new highs. The fact that Ethereum now processes substantially more daily transactions than it did in 2021 indicates that its network usage has matured beyond speculative trading. The consistent growth in transactions reflects heavy usage across decentralized finance, stablecoin settlements, and other applications.
Ethereum Daily Transactions Chart. Source: @SentoraHQ on X
Ethereum in Reaccumulation Within a Macro Uptrend
A technical analysis of Ethereum’s market capitalization on the three-week chart suggests the cryptocurrency is consolidating within a broader upward trend. Analysis indicates that Ethereum’s market cap is holding above the 21 Exponential Moving Average (EMA), respecting a rising macro trendline, forming a pattern of higher highs and higher lows, and consolidating beneath a key historical resistance level. This is constructive behavior, not a sign of weakness.
Historically, periods where Ethereum’s market cap has remained above the 21 EMA on this timeframe have led to significant expansion phases, while sustained moves below it have signaled bear market conditions.
Currently, the structure shows this EMA support is holding. From a probability standpoint, the setup favors a continuation of the uptrend rather than a breakdown. A decisive break above the overhead resistance band would likely confirm a new expansion phase, potentially leading to a bullish continuation of 70% to 75%.
Market Cap ETH. Source: @egragcrypto on X
Conversely, a bearish scenario would become more likely if the price action loses the 21 EMA support on the three-week chart. This could trigger a deeper correction of 25% to 30% toward the lower trendline, although this outcome is currently considered less probable.
Featured image from Unsplash, chart from TradingView
Frequently Asked Questions
FAQs Ethereum Network Activity Market Trends
Beginner Questions
Q What does Ethereum network activity is surging actually mean
A It means theres a significant increase in the number of transactions smart contract interactions and users on the Ethereum blockchain Think of it like a highway suddenly getting much busier
Q Why is high network activity a good sign for Ethereums price
A High activity usually indicates growing demand and utility More people using the network for applications can increase the value of the ETH token itself as its needed to pay for transactions
Q What is market structure in crypto
A It refers to the overall technical picture of price actionlike key support and resistance levels trading volume patterns and trends on charts A positive structure suggests the price is more likely to go up than down
Q Im new to crypto Should I buy ETH because of this news
A This FAQ provides information not financial advice Always do your own research understand that crypto is volatile and never invest more than you can afford to lose
Intermediate Advanced Questions
Q What specific metrics show Ethereums activity is surging
A Key metrics include
Daily Active Addresses A rising number of unique wallets transacting
Gas Fees Higher average fees can indicate network congestion due to demand
Total Value Locked The amount of capital deposited in Ethereumbased DeFi protocols
Transaction Count Volume Raw numbers of transactions and the value moved
Q How does onchain activity translate to a continued upward price trend
A Strong onchain activity can signal sustainable demand not just speculation It can lead to a positive feedback loop more usage more ETH being usedboughtstaked reduced sell pressure potential price appreciation
Q What are the risks if activity surges too quickly
A Historically extreme surges led to network congestion and very high transaction fees which can hurt user experience However Ethereums ongoing upgrades are specifically designed to handle this scaling issue