- Ethereum remains strong despite a price drop to around $2,047, with daily network activity and user growth near record levels.
- Holders continue to accumulate, as declining exchange reserves indicate sustained investor confidence.
Ethereum’s price may be under pressure, but the network is telling a very different story. While short-term volatility has pushed ETH lower, on-chain data reveal strong growth, rising user activity, and steady investor confidence.
Price Weakness Hits Ethereum Amid Global Tensions
Ethereum (ETH) dropped by 3.5% in the past 24 hours, falling to around $2,047. The decline followed market uncertainty triggered by remarks from Donald Trump regarding Iran, which sent shockwaves across crypto, equities, and oil markets.
This broader risk-off sentiment has weighed on digital assets, with Ethereum not spared. However, price action alone does not reflect the full picture.
Ethereum Network Activity Reaches Near Record Levels
Despite the dip, Ethereum’s network activity remains strong. Data from Santiment shows that daily active addresses are nearing 788,000.
At the same time, the network is adding about 255,000 new addresses each day. This steady influx of users suggests that adoption continues, even during market pullbacks.
Such growth highlights sustained engagement across decentralized applications, DeFi platforms, and the broader ecosystem.
DEX Market Share Expands as Competition Shifts
Ethereum is also gaining ground in the decentralized exchange space. According to Coin Bureau, Ethereum’s DEX market share rose from 33% in January to 42% in March.
This increase is largely driven by Layer 2 scaling solutions, which have improved transaction speed and reduced costs.
Meanwhile, activity on Solana has slowed. Its DEX volumes dropped to $55.5 billion in March, marking the lowest level since September 2024.
Falling Exchange Reserves Signal Strong Holder Confidence
Investor behavior further supports a bullish outlook. Data from Glassnode shows that Ethereum held on centralized exchanges has fallen to around 11%.
This is a sharp decline from 32% in June 2020. The trend has accelerated in early 2026, continuing a pattern seen since 2022.
Lower exchange reserves often indicate reduced selling pressure. Many investors appear to be moving their ETH into long-term storage rather than preparing to sell.
Four wallets (possibly belonging to the same whale) withdrew 32,879 $ETH($69M) from #Kraken 8 hours ago.https://t.co/NP4ZnYHHFshttps://t.co/phUDMy8MAmhttps://t.co/Kg9Jb8zzwohttps://t.co/MkXPQRUu8i pic.twitter.com/hqbz6orhmI
— Lookonchain (@lookonchain) April 2, 2026
What This Means for Ethereum’s Outlook
Ethereum’s fundamentals remain strong despite short-term price weakness. Network growth, rising adoption, and declining exchange balances all point to continued confidence in the asset.
However, future price direction will depend on global conditions, including geopolitical developments and broader market sentiment.
For now, Ethereum shows a clear divide between price action and underlying strength, one that could shape its next major move.
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