Ethereum Network Activity Hits Yearly Low: Understanding the Impact of Retail User Withdrawal

Ethereum's price has plunged below $2,850 due to a broad market downturn and the noticeable exit of retail users, pushing the network into a period of low activity. CryptoQuant's latest analysis shows the network activity at a one-year low, with active sending addresses dropping to around 170,000, indicating a lack of retail participation. This decline usually follows periods of volatility and price correction, which tend to shake the confidence of smaller participants. While this can limit short-term gains, it often signals a phase where larger, long-term participants quietly accumulate ETH. However, if address activity continues to fall or stagnate, Ethereum risks entering a deeper consolidation phase. Institutional investors are also showing caution, with significant outflows from Ethereum ETFs seen this week amid market uncertainty.