Ethereum network activity is at record highs, but the ETH price recently fluctuated between $1,800 and $2,100 amid market pressure.
Around 30% of the ETH supply is locked in staking, reducing the liquid supply but increasing short-term volatility risk.
Macro uncertainty and broader crypto price trends are heavily influencing ETH more than on-chain growth.
Ethereum's price has been falling even as its network continues to grow. ETH is trading in a wide range between $1,800 and $2,100 at press time. These volatile swings happened during a broader market sell-off that affected many digital assets.
Crypto prices often move according to the global economic mood. When investors feel nervous about inflation, interest rates, or world events, they tend to pull money out of risky assets. Digital coins are still seen as high-risk investments. As a result, even strong network growth may not prevent price declines during uncertain times. Short-term fear can overpower long-term growth stories.
Ethereum’s network keeps growing. Transactions have reached record highs. More users are using Layer-2 networks to lower fees and speed up transactions. Developers are still building new apps, and new ideas are coming in.
ETH price does not always rise due to strong activity. Markets often expect upgrades before they happen. If results take longer than expected, traders may feel disappointed and sell. Sometimes growth was already priced in during earlier rallies.
The way Ethereum works is also changing. The network serves as a base layer for final transactions, while many payments occur on rollups. This makes the system efficient, but it can confuse some investors and their prospects for value growth.
About 30% of the total ETH supply is now locked in staking contracts. This means nearly one-third of all coins cannot be quickly sold on the open market. In theory, a lower liquid supply should support Ethereum price.
Institutional products and large holders are also staking significant amounts. Some funds stake most of their ETH holdings to earn rewards. This reduces available coins on exchanges, which can act as a supply floor over time.
Staking also brings a different risk. When markets fall, only the liquid portion of ETH can be sold quickly.
This concentrates selling pressure on the unlocked coins. If fear spreads, the smaller pool of tradable ETH may experience sharper price declines.
Also Read - How to Convert ETH to USDT on Trusted Exchanges at Low Cost: Easy Guide
Exchange reserves have fallen as more ETH moves into staking and long-term storage. At the same time, a few large holders still control big positions. When these players adjust their portfolios, the market can react strongly.
During late February 2026, the move between $1,800 and $2,100 showed how fast sentiment can shift. Thin order books and sudden selling can push prices down quickly. Even healthy fundamentals cannot prevent short bursts of intense volatility.
Liquidity plays a key role in crypto markets. When buyers step back and sellers become aggressive, price gaps appear. This dynamic can create the feeling that price is disconnected from progress.
Big investors have helped push ETH higher in the past. Some exchange-traded products buy ETH and also stake it to earn rewards. Many of these products lock up a large share of their coins.
ETH's rules and fees can change. If new regulations make these products less attractive, large funds may reduce their holdings.
When whales begin selling a large number of tokens, the Ethereum price can fall. News about government policies can sometimes move ETH more than network upgrades.
Institutional staking also changes how rewards are given out. When rewards are locked or controlled by companies, it affects the flow of new ETH into the market. This makes supply harder to understand and adds more complexity.
Crypto markets are strongly driven by themes. At different times, investors focus on artificial intelligence, meme coins, Layer-2 scaling, or other trends. When attention shifts away from Ethereum, capital can move elsewhere, even if its fundamentals stay strong.
Narratives influence short-term performance. A powerful story can lift prices quickly, while fading excitement can do the opposite. This rotation does not mean the network is weaker. It simply shows that capital flows where momentum appears strongest.
Also Read - Ethereum Nears a Possible Bottom as Realized Price Signals Support: What’s Next?
Ethereum is growing stronger. More people are using the network, transactions are rising, and about 30% of ETH is locked in staking. These are positive signs for the system.
Ethereum price also changes based on emotions, market liquidity, global news, and where investors move their money. ETH moved between $1,800 and $2,100 quickly in recent times, showing how fast the digital asset space can react.
In simple words, growth makes the foundation strong. ETH price still depends on many things at the same time. Long-term progress looks solid, even if short-term price moves up and down.
Why is Ethereum falling if the network is growing?
Price is influenced by macro conditions, investor sentiment, and liquidity, not just blockchain activity.
What does 30% staking mean for ETH?
It means nearly one-third of the total ETH supply is locked, which reduces tradable coins but can increase volatility during sell-offs.
Did ETH recently see big price swings?
Yes, in late February 2026, ETH moved between roughly $1,800 and $2,100 within a short period.
Does high network activity guarantee price growth?
No, strong usage supports long-term value, but short-term crypto prices depend on broader market conditions.
Are institutions affecting ETH price?
Yes, large holders, ETFs, and staking products can significantly influence supply and demand dynamics.
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