The price of ether (ETH), the cryptocurrency of the Ethereum network, has managed to consolidate above the barrier of 2,000 dollars since March 9.
During these days, the cryptocurrency has traded within a range between 2,030 and 2,080 dollars, which represents an increase of 2.5% in the last seven days. This movement returns the quotation to an area of historical support, sustained by a notable surge in network usage and in transaction volume with smart contracts.
The graph shows the relationship between the price of ether and the number of active addresses from 2016 to 2026.
Source: CryptoQuant.
The increase in addresses reflects a growing participation of users in Ethereum.
According to the analysis and research firm XWIN Research, "the increase in active addresses reflects an expansion in the use of decentralized finance (DeFi), stablecoins, and automated interactions with smart contracts."
The entity adds that despite being "in a period of low performance in prices, the Ethereum network continues to attract users and transactions."
This phenomenon marks a contrast to previous cycles, in which network activity usually collapsed along with the asset's price. Such a fact suggests a change in market structure, signaling very strong interest and maturity of the ecosystem.
"This divergence suggests that the underlying adoption of the network could be strengthening, potentially supporting the long-term fundamentals of ether despite short-term market volatility," they state from XWIN Research.
The recovery is not definitive
Despite the optimism for the increase in users, technical analysis suggests that the recovery of the ether price is not definitive.
Market analyst Ted Pillows states that ether "needs a daily close above the level of 2,150 dollars for a rally towards 2,400 dollars," as seen in the graph showing key levels of support and resistance.
Ether could fall below 2,000 dollars.
Source: Ted Pillows – X.
For the specialist, the level of USD 2150 is crucial to validate the trend, as he warns that if this movement does not consolidate, "there is a considerable possibility that ETH will fall to new lows."
The interpretation of this data requires caution, as the volume of activity does not always translate into immediate buying pressure. It often happens that active addresses rise vertically while the price falls, indicating capitulation.
Under this premise, a large number of users could be moving their assets at the same time to exit the market or close positions due to fear of the bearish cycle.
The price faces resistance
In this sense, one must take into account the current context. And although the cryptocurrency shows technical solidity, the price faces resistance because there is greater selling pressure than the influx of new money. All this occurs in a backdrop of geopolitical uncertainty, which is affecting market performance.
Therefore, the current jump to a million active addresses suggests massive adoption, possibly driven by Layer 2 (L2) solutions or new protocols that have reduced transaction costs. This infrastructure has allowed the ecosystem to maintain its relevance against competing networks.
However, this infrastructure faces a conceptual debate. As reported by CriptoNoticias, Vitalik Buterin, co-founder of Ethereum, pointed out that the role of Layer 2s needs urgent redefinition. According to the developer, with the drop in fees on the main network, many L2s have lost meaning as they used low costs as their main competitive banner.
It is understood, therefore, that the sustainability of ether's rise will depend on whether organic activity in DeFi and stablecoins can absorb the circulating supply. For now, the network demonstrates operational resilience that seeks to be validated by price action in global markets.
If you wish to verify the source of the information contained in this article, you can consult the following link:
https://www.criptonoticias.com/mercados/ethereum-rompe-barrera-usd-2000-impulsado-actividad-red/
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