Ethereum is showing a rare divergence between price and on-chain fundamentals. While the asset has faced recent downward pressure today, network activity continues to surge, pointing to a growing disconnect between valuation and usage. A CryptoQuant analysis revealed the development amid Ethereum’s 1% price slump this morning, following Bitcoin’s derivatives liquidation cascade. Ethereum returned from testing the $2,400 resistance and is now trading at $2,313.
Network Activity Climbs to Record Levels
According to CryptoQuant data, the 100-day simple moving average (SMA 100) of Ethereum’s active addresses has reached a new all-time high of approximately 587,000. This marks the highest sustained level of user activity in the network’s history.
The SMA 100 metric reflects long-term trends rather than short-term spikes, making it a reliable indicator of underlying demand. The steady climb to 587,000 active addresses suggests that Ethereum is experiencing consistent growth in real user engagement.
This type of expansion typically signals increased adoption, higher transaction throughput, and a more active ecosystem. It also indicates that users are continuing to interact with the network across applications such as decentralized finance, payments, and other on-chain services. These surging interactions pushed the network to a new ATH of 200 million transactions in Q1 2026. The network also recently reached another peak with total transfers reaching 1.3 million.
In practical terms, the data shows that Ethereum is not just maintaining activity levels but actively expanding its user base over time.
A Rare Divergence Between Fundamentals and Price
Despite this surge in activity, Ethereum’s price has not followed the same trajectory. Instead, it has remained under pressure, moving sideways or trending downward in recent sessions.
Historically, there has been a strong positive correlation between network activity and price performance. Periods of rising active addresses have often coincided with or preceded upward price movements. The current market, however, presents a clear break from that pattern. While usage continues to grow, price has yet to reflect the same momentum.
This disconnect creates a bullish divergence. On one side, network fundamentals are strengthening, with record levels of participation and activity. On the other hand, market sentiment and price action remain relatively subdued. The divergence suggests that the market may not be accurately pricing in underlying fundamentals.
From an on-chain perspective, this imbalance implies that Ethereum is currently undervalued relative to its actual network usage.
What the Data Suggests for Ethereum
Active address growth is widely regarded as a proxy for demand. More users interacting with the network typically translates to greater utility and long-term value. If historical patterns hold, the ETH price could realign with these fundamentals over time. Thus, the sustained increase in activity would eventually be reflected in Ethereum’s valuation.
However, the timing of such a realignment is uncertain. Short-term price action is often influenced by external factors such as macro conditions, derivatives positioning, and broader market sentiment. Nevertheless, Ethereum’s long-term outlook looks promising.
Temitope Olajide
