Ethereum network activity has been spiking as daily active addresses hover near the network’s highest range ever. However, such activity has not been reflected on the price as it stagnates below the $2,000 level. Despite the price stagnating, Ethereum supply on exchanges just crashed to historic lows of 14.5M ETH.
Ethereum network activity and price are poles apart
When the network activity and the price of Ethereum are put into context, they are poles apart from each other. The network activity, which was peaking in 2018 at ~720K and hitting approx. 800K in the 2021 bull run, has been regularly pushing 1 million and above during 2025-26. However, researcher Leon Weidman states that the price has not responded similarly during the other times when network activity reached these high values.
Some in the crypto community responding to Weidman’s post stated:
Smart money buys when crowds get distracted by stagnating prices
The spike in network activity comes as Ethereum co-founder Vitalik Buterin revealed that the Ethereum Foundation (EF) was shifting focus to prioritize longevity over breadth. When the whole crypto market is distracted and worried about why the price is not reacting to the changes in the network activity, the Ethereum supply on exchange reserves have tanked to a new low as it sits at 14.5 million.
When looking at the charts, the ETH supply has been tanking since September 2025, when the price of ETH was around $4,000. This shows that the supply has been moved away from exchanges into cold wallets during the past 9 months.
Ethereum tests multi-year support level
When looking at the weekly ETH charts, it makes sense as to why the whales have been accumulating the coin. ETH is currently testing the support level at which it is making its higher lows. Historically, when the coin hits these levels, smart money usually goes into a buying spree as they want to catch as much profit as they can.
This time too there is not much difference. Priced at $1,600, the coin has just broken a bit below the trendline, which is natural. Such minor deviations are common around major support levels, as traders test the strength of the trend before a clearer directional move emerges.
The relative strength index shows that ETH is on the verge of being oversold, with a reading of 31 on its scale. So when the whole scenario is put into context, this is the perfect opportunity for smart money to enter the market. In the coming days, ETH prices could spike, and it could test the resistance level at $2,400, which happens to be the 200-day MA first.
