Ethereum Network Activity Explodes, Market Structure Points To Upside Continuation

Overview

Ethereum is experiencing a surge in network activity, achieving record levels of daily transactions. This uptick in on-chain usage coincides with a bullish technical structure, suggesting a potential upward trajectory for the cryptocurrency. These developments indicate that Ethereum may be transitioning from a period of sideways movement to sustained demand and positive price behavior.

Ethereum’s Record Daily Transactions

Recent data indicates that Ethereum’s daily transactions have reached approximately 2.8 million, marking a new all-time high for the network. This figure is significant as it surpasses transaction levels from the peak of the 2021 bull market by around 64%. The increase in daily transactions is not only a record but also highlights a shift in network utilization from speculative activities to more substantial real-world applications.

The transaction activity on Ethereum has been steadily rising, as illustrated by chart data from Sentora. The progression of transaction counts over the years shows a notable spike in early 2026. This increase is particularly relevant when compared to the transaction activity during 2021, a time characterized by an altcoin season and a boom in non-fungible tokens (NFTs). The current transaction levels suggest that Ethereum’s network is experiencing heightened usage across decentralized finance (DeFi) and stablecoin settlements, moving beyond mere speculation.

Technical Analysis and Market Structure

Technical analysis of Ethereum’s market capitalization on a three-week candlestick timeframe reveals that the cryptocurrency is operating within a stable zone. Analysis by crypto analyst Egrag Crypto indicates that Ethereum is currently in a phase of reaccumulation, situated within a macro uptrend. The market cap is holding above the 21 Exponential Moving Average (EMA), adhering to a rising macro trendline while consistently printing higher highs and higher lows.

This behavior is considered constructive rather than indicative of weakness. Historical analysis shows that when Ethereum’s market cap remains above the 21 EMA on this timeframe, it often leads to expansion phases. Conversely, sustained movements below this level have typically coincided with bear market conditions. Currently, the support from the 21 EMA appears to be robust.

A breakthrough of the overhead resistance band could signal the start of an expansion phase for Ethereum, potentially leading to a significant bullish continuation. However, if the price action were to fall below the 21 EMA on the three-week chart, it could trigger a bearish scenario, although this outcome is deemed less probable.

From author

The recent activity on the Ethereum network is noteworthy as it highlights a shift in user engagement. The record-high daily transactions indicate that Ethereum is becoming increasingly utilized for practical applications, rather than being driven solely by speculative trading. This shift could have significant implications for the future of the cryptocurrency as it positions itself as a robust platform for decentralized applications.

Impact on the crypto market

• Ethereum’s record daily transactions suggest increased real-world usage, potentially influencing other cryptocurrencies and blockchain projects.
• A sustained bullish trend in Ethereum could attract more institutional investment, impacting overall market sentiment.
• The technical structure indicating potential for upward continuation may encourage traders and investors to engage more actively with Ethereum.
• A bullish Ethereum could lead to a ripple effect across the DeFi space, enhancing the attractiveness of decentralized financial products.
• Conversely, a decline below the 21 EMA could introduce caution among investors, potentially affecting market confidence in Ethereum and similar assets.