Ethereum News Today: Ethereum Active Addresses Hit 1-Year High 841,100 Amid Price Drop Below $3,500

Ethereum’s daily active addresses surged to 841,100 in July and August 2025, reaching a one-year high, as recorded by on-chain analytics platforms including Santiment and Lookonchain [1][3]. This spike occurred amid a broader decline in the cryptocurrency market, with Ethereum’s price dropping below $3,500 during the same period [3]. The increase in user activity highlights growing engagement with the Ethereum network, particularly in decentralized finance (DeFi) and decentralized exchange (DEX) transactions, which have historically signaled significant market movements [3].

The surge in active addresses is notable for its timing, occurring just before a sharp price correction. According to crypto analyst Ali Martinez, the correlation between high on-chain activity and price drops suggests a period of heightened volatility and trading volume [3]. Santiment noted that similar patterns have historically preceded major market shifts, raising the possibility that the Ethereum network is entering a phase of increased activity and potential consolidation [8].

Institutional interest in Ethereum remained strong, as evidenced by significant inflows into spot Ethereum ETFs. On August 1, 10 ETFs collectively purchased 8,183 ETH, totaling around $29.8 million, with BlackRock’s ETHA fund being the largest contributor, acquiring 4,841 ETH valued at $17.65 million [3]. Despite this institutional demand, ETFs experienced some outflows in early August, indicating a mixed investor sentiment as traders navigated the volatile conditions [7].

The divergence between Ethereum’s price performance and its on-chain metrics has sparked comparisons to the 2021 bull market, during which rising active addresses also preceded a price rebound. Technical analysts have observed Ethereum forming a descending wedge pattern, suggesting the potential for a bullish breakout in the near term [4]. While the immediate price pressure persists, many analysts remain cautiously optimistic, pointing to the network’s expanding utility and adoption as positive indicators for the future [3].

The growing number of active addresses underscores the resilience of Ethereum’s ecosystem and its role as a foundational layer for decentralized applications. As the market continues to digest the implications of this surge in on-chain activity, investors are watching for signs of broader market shifts, potential regulatory changes, and the evolution of Layer 2 solutions that could further enhance Ethereum’s scalability and usage [3].

Source:

[1] title1.............................(https://www.ainvest.com/news/ethereum-news-today-ethereum-daily-active-addresses-hit-2-year-high-841100-price-drop-3500-2508/)

[3] title2.............................(https://www.tokenpost.com/news/investing/16554)

[4] title3.............................(https://blockchainreporter.net/ethereum-eyes-9k-as-descending-wedge-signals-bullish-breakout/)

[7] title4.............................(https://coinstats.app/en/news/stories/ethereum/02-08-2025/)

[8] title5.............................(https://coinedition.com/ethereum-eth-price-july-performance-august-outlook/)