Ethereum Sees Strong Network Growth: Is the Crash Finally Over?

Ethereum has extended its sharp decline this week, sliding to its lowest price levels since late June as the broader cryptocurrency market sell-off continues. The drop has reignited concerns among traders, especially as ETH still shows growth across its network and ecosystem.

ETH slipped below $2,100 to trade at $2,078.58 and it’s a decline of 8.73% in the last 24 hours. The asset has backed over 54% from its post-August highs. This pullback has reduced Ethereum’s market capitalization to $251.16 billion.

Network Growth Remains Strong

Ethereum's price is experiencing a downturn, as opposed to its on-chain activity that continues to increase. According to Nansen, users of the ETH network have increased over the past month. 

The number of active wallet addresses increased by around 45%, reaching over 15 million, suggesting increased participation.

The transaction volume has seen a major increase and reached 68 million transactions after growing 40% during the past month. 

Despite declining average transaction fees, the spike in activity has pushed total network fees above $15 million, representing a notable increase.

The volume of Ethereum-based decentralized exchanges reached $52.8 billion in January, an increase from December's $49 billion volume. 

The growing liquidity on major platforms like Uniswap, Curve Balancer, and newer platforms demonstrates the continued demand for Ethereum's settlement layer.

Tokenization and Stablecoin Leadership

Ethereum’s dominance in real-world asset tokenization has also expanded. The total value of tokenized assets secured on the network has increased by roughly 15% over the past month, crossing $14.4 billion. 

In addition, Ethereum remains the primary infrastructure for stablecoins, with total stablecoin market capitalization on the network exceeding $165 billion.

Institutional adoption continues to play a key role, as major financial firms increasingly utilize Ethereum for tokenized products and settlement layers.

Also Read: Ethereum Price Dip Mirrors Last Bull Run Setup: Here’s Why 

Technical Outlook 

Ethereum futures liquidations reached $209.33 million, driven by $147.33 million in long positions over the last 24 hours, according to Coinglass data.

ETH is testing the $2,100 support level for a second consecutive day after seeing a rejection at the resistance near $2,380. A break below the support could push ETH toward $1,730.

ETH must recover the 20-, 50-, 100-, and 200-day Exponential Moving Averages (EMAs) to establish an upward price trend. 

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) show that both indicators are still in oversold zones, and it shows strong downward momentum.