Ethereum's Spot Volume Drops 13.40% Amid Market Stabilization

Ethereum’s spot volume has notably decreased following its recent downtrend, indicating a potential shift in market dynamics. The volume bubble map shows smaller, neutral-toned clusters, suggesting a reduction in speculative behavior. Historically, such cooling in volume has aligned with phases of stabilization rather than heightened volatility. While this doesn’t confirm a bottom, it may ease intense market swings. This shift comes after Ethereum’s correction phase and could help pave the way for calmer market conditions as buyers and sellers find temporary balance.

On-chain metrics show modest user engagement gains, hinting at improving sentiment. Daily Active Addresses rose to 431.2K, while new addresses surged by 13.40% in seven days. Zero Balance Addresses also climbed 25.17%, reflecting increased wallet creation and user interaction. This uptick comes even as price remains sluggish, suggesting users are cautiously re-engaging with the network. Therefore, although ETH lacks bullish explosiveness, address stats point to growing on-chain participation, possibly laying the groundwork for stronger accumulation.

Ethereum broke out of its multi-month descending channel and had started testing resistance near $1,805. At the time of writing, ETH traded at $1,804.27, down 0.86% in the last 24 hours. This level aligned with the 0.236 Fibonacci retracement, creating a decisive barrier. However, the breakout from the downtrend marked a notable technical shift. The RSI was 53.80, holding above neutral but still lacking aggressive momentum. A clear push above $1,805 could revalidate bullish continuation, though sellers remained active at this zone.

Supply on exchanges has dropped sharply, hitting 8.05 million ETH. This continued downtrend reflected sustained accumulation and reduced intent to sell, often seen as a bullish long-term signal. Throughout 2025, the chart revealed consistent outflows with few inflow spikes, showing conviction among holders. While short-term price action remained capped, the lack of exchange supply limits sudden dump risks. This dynamic may support price resilience if demand gradually recovers, especially with speculative volume cooling.

The Binance ETH/USDT heatmap highlighted a tight liquidation band between $1,775 and $1,830. This zone has repeatedly absorbed both long and short liquidations, confirming it as a high-stakes battleground. The price now traded near the lower edge, risking further liquidations if downside pressure continues. However, if bulls manage a sustained break above $1,830, it could trigger cascading short liquidations. Therefore, volatility remains high within this narrow corridor, with both sides unwilling to give ground easily.

Ask Aime: What's the outlook for Ethereum after its recent downtrend?

Ethereum’s declining spot volume, consistent exchange outflows, and a steady rise in address activity signal a stabilizing market. These factors suggest reduced sell pressure and growing confidence among long-term holders. However, the strong resistance around $1,805 and persistent liquidation clusters near current levels may continue to cap upward momentum. Therefore, ETH must attract stronger demand and decisively flip this resistance to confirm a sustainable bullish reversal.