Ethereum News Today: Ethereum Daily Active Addresses Hit 2-Year High At 841100 Amid Price Drop Below $3500

Ethereum's daily active addresses have surged to 841,100, reaching a two-year high as of August 2025, according to recent analysis [1]. This metric is often viewed as an indicator of network engagement, reflecting the number of unique addresses conducting transactions on the Ethereum blockchain. However, despite the surge in activity, Ethereum’s price has fallen below $3,500, signaling a potential disconnect between usage metrics and market sentiment.

The spike in daily active addresses marks a significant shift from the recent consolidation range of approximately 600,000 addresses. While the increase in network activity typically indicates heightened interest, it does not clarify whether the activity is driven by buying or selling pressure. Historically, such spikes have often preceded periods of volatility, and this instance is no exception—ETH has experienced a sharp price decline following the surge in address activity [1].

Further complicating the narrative, Glassnode data reveals that the 30-day moving average of USDT transfer volume has climbed to $52.9 billion, a recovery from the levels seen during the 2022 market downturn. However, Ethereum’s share of USDT transactions has waned, with Tron now leading at $23 billion and BNB Chain following at $14.9 billion [1]. This suggests that, despite increased Ethereum activity, users are increasingly favoring lower-fee networks for stablecoin transfers, potentially driven by high ETH gas costs.

From a technical perspective, Ethereum has broken below key support at $3,548 and failed to hold above the rising trendline established since mid-July [1]. A bearish engulfing pattern has been confirmed by the subsequent formation of three large red candles, commonly known as the Three Black Crows, which is often interpreted as a sign of distribution. The Relative Strength Index (RSI) currently stands at 28.97, indicating an oversold condition, but without a bullish divergence to suggest a reversal. The 50-period simple moving average at $3,745 remains a significant resistance level, while the formation of lower highs and lower lows is shaping a descending triangle pattern [1].

Key support levels to monitor include $3,428, $3,331, and $3,235. Traders have been advised to consider short positions if Ethereum retests the $3,548 level, with stop-loss above $3,600 and profit targets at $3,428 or below. More aggressive strategies could involve shorting at $3,428 with targets at $3,331 and $3,235. A reversal to bullish bias would require ETH to reclaim above $3,651 and break the descending trendline.

Meanwhile, the broader crypto market has seen increased activity beyond Ethereum, with projects such as Bitcoin Hyper ($HYPER) drawing attention. The Bitcoin-native Layer 2 solution has raised over $6.2 million in its public presale, combining Bitcoin’s security with Solana’s speed to enable fast, low-cost smart contracts and dApps [1]. The project has gained traction due to its focus on scalability and real-world utility, with a full rollout expected in early 2025.

Overall, the Ethereum price action and user behavior suggest a period of uncertainty in the market. While on-chain metrics point to increased engagement, technical indicators and shifting transactional preferences highlight a challenging near-term outlook for ETH.

---

Source:

[1] https://cryptonews.com/news/ethereum-price-prediction-daily-active-addresses-at-2-year-peak-what-does-this-mean-for-eths-value/