Daily active Ethereum count ($ETH) addresses have decreased dramatically over the past month or so, indicating that on-chain participation has cooled sharply.
Specifically, this number decreased from 1,329,193 people on February 7th to 746,062 people on March 3rd, representing a decrease of about 45%, as identified in the data searched by Finvold. ether scan.
How dramatic the change has been is evidenced by the fact that the February 7th level was close to a record number of 1,420,187 actives. $ETH Address recorded on Friday, December 9, 2022.
Unsurprisingly, this decline comes amid continued price weakness and reflects the broader market’s struggle to regain footing in Q1 2026. This raises questions about the near-term trajectory of network demand and asset prices.
Nevertheless, Ethereum is up 6.62% in the past 24 hours, trading at $2,078 at the time of writing, and there are signs of a reversal, at least in the short term, as Bitcoin (BTC) managed to cross $70,000 as capital returns to large digital assets.
Is Ethereum recovering?
This increase appears to be primarily driven by momentum, as the overall market is also doing well. In fact, the market capitalization of cryptocurrencies increased by 4.8% to $2.42 trillion, indicating widespread buying interest.
Additionally, perpetual futures open interest increased by 8.8% over the same period, and funding rates jumped by 21%. This suggests that traders are actively adding long leveraged positions and increasing their confidence in the cryptocurrency.
Now, traders are focusing on key technical levels. In other words, Ethereum faces immediate resistance near $2,150, an area that has limited recent rally attempts. If it can continue to break through this barrier, $2,300 could be its next target.
However, downside risks still remain. This means that a break below $2,000 could re-expose the $1,900 area and undermine the current recovery structure. Similarly, Bitcoin’s trajectory is also likely to serve as a benchmark, with market participants eyeing the possibility of Bitcoin consolidating above $71,500 as a sign of continued strength.
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