Ethereum has climbed back above $2,300, with bulls now eyeing the $2,400 mark that has repeatedly capped the recent recovery. The price picture looks healthier, but a CryptoQuant on-chain deep dive suggests the market’s narrative may be missing a crucial piece. What the on-chain data shows - CryptoQuant highlights Ethereum’s active addresses (unique wallets transacting on the network daily). The 100-day moving average of this metric has just hit an all-time high of roughly 587,000 active addresses — not a multi-year or cycle peak, but the highest sustained daily engagement in Ethereum’s history. - That milestone arrives amid an unusual divergence: ETH’s price sits more than 50% below its October peak, yet network usage — as measured by the smoothed 100-day active-address average — is at a record. According to CryptoQuant, this is the largest deviation they’ve ever recorded between price and active-address growth. Why this matters - Historically there’s been a strong positive correlation between active-address growth and Ethereum’s price. When network utility rises, prices tend to follow over the long term. The current disconnect — rising fundamental usage while price languishes — has been rare and, in past episodes, the gap has closed in favor of the utility signal. - CryptoQuant frames this as a “hidden bullish” signal: the market is pricing ETH on weak sentiment, while the network is showing increasing, real-world engagement. It’s the on-chain equivalent of a company gaining customers during a recession — a sign of durable demand that price alone isn’t reflecting. Technical landscape and market structure - ETH is stabilizing near $2,320 after the sharp February drawdown. The rebound from sub-$1,800 formed a clear higher low, but upside is running into resistance around $2,400, where the 50-week and 100-week moving averages sit. Both averages are flattening and acting as short-to-medium-term ceilings. - The 200-week moving average remains below price and trending upward, providing long-term structural support. Holding above that level through the correction keeps the broader macro trend intact, even as medium-term weakness persists. - Since March, price action has shifted from impulsive selling to range-bound consolidation: orderly recovery with higher lows and measured gains rather than aggressive rallies. However, ETH has yet to reclaim the $2,600–$2,800 zone — the region that previously accelerated the breakdown — suggesting sellers remain active on rallies. - Volume patterns back this up. After a capitulation spike tied to forced liquidations, trading participation has tapered off during the recovery, implying cautious accumulation rather than broad, conviction-driven buying. The key levels to watch - For a clear turn to decisive bullishness, ETH needs to reclaim and hold above the 100-week moving average. Until that happens, the market is still in a transitional phase between recovery and the risk of further continuation downtrend. Bottom line On-chain metrics show Ethereum’s network activity is stronger than prices imply. That divergence — unprecedented by CryptoQuant’s account — points to growing fundamental demand and a potential undervaluation if historical relationships reassert themselves. The question now is how long the market can ignore the network signal before price catches up. Featured image: ChatGPT; chart: TradingView.com Read more AI-generated news on: undefined/news