Ethereum Price Slips as Network Activity Hits Multi-Month Highs

ETH price has slipped in recent weeks. Meanwhile, activity on the Ethereum network just hit some of its strongest levels in months.

Daily transactions and new wallet addresses are both climbing fast. Some trackers show transaction counts near all-time highs. Traders are calling it a fundamental divergence between network usage and price.

That gap sits at the center of this week's ETH price story.

Why Are Daily Active Addresses Rising So Fast?

New daily ETH addresses jumped from 121,210 on August 8 to 212,560 just over a week later. The data comes from the on-chain analytics account Ali Charts, citing figures from Santiment.

That works out to a jump of roughly 75% in about eight days.

Rising address counts are one of the more reliable signs of real user growth on a network.

Stretches like this have shown up before bigger price moves in the past. That link does not hold every single time, though.

What Is the $1,525 Support Level Everyone Is Watching?

Trader Merlijn has flagged one price zone for months: $1,525.

By his count, ETH price has rallied off that exact level twice before. The first move gained 168.21%. The second gained 227.06%. Both moves started at $1,525.

That covers three years and two separate market crashes. The floor has not broken once in that stretch.

Price tested the $1,525 zone again this year, while most traders' attention sat on other headlines.

Over the past three weeks, ETH has traded between $1,827 and $1,941 before settling near $1,882, about 23% above the floor.

*This figure marks the pattern extension drawn on the chart. It is not a confirmed outcome.

Merlijn's view is that third tests are the hardest to trust. By the time price comes back a third time, the level feels old, and most traders expect it to fail.

He also points out that almost nobody is positioned for a third rally right now, and in his view that is usually the point. If price loses $1,525, though, he says the pattern is dead.

Vitalik Buterin Outlines Ethereum Scaling Goals

While traders track price levels, Ethereum's co-founder is focused on something else. He wants the network to handle far more activity without losing what makes it work.

Vitalik Buterin posted this week that Bitcoin's community deserves credit for early work on ideas like Utreexo, a method that shrinks how much data a node has to store.

Buterin said the current scaling plan borrows from that thinking. The goal is to blend UTXO-style state, the accounting method Bitcoin uses, with the dynamic state model the network already runs on.

In his words, the aim is to let most network activity scale up sharply while staying decentralized, easy to run a node on, and resistant to censorship.

His post replied to a proposal from a user posting as conall.gwei on the Firefly platform.

That proposal suggested pairing Buterin's STARK-aggregated mempool idea with a UTXO design credited to a contributor called Toni, and it pointed to a related post from another account, @XRS_02.

STARKs are a type of mathematical proof. They let a network confirm large batches of transactions without checking each one by hand.

Could Price Repeat Its Bigger Rally Pattern?

A few traders have floated bigger long-term targets. If ETH ever matched a Bitcoin-style comparison to global M2 money supply growth, some argue it could trade above $12,000 eventually.

That comparison plays out over years, not weeks. It is far from guaranteed and reads more like a long-range idea than a forecast.

Closer to now, the $1,525 zone remains the level that matters most. As long as price holds above it, the multi-year pattern stays alive. A close below that line would change the setup fast.

Ethereum Price Prediction: What Comes Next

ETH faces two competing stories at the moment. Network use is climbing fast, and Buterin's scaling proposal points to a more efficient system down the road.

Price itself has not confirmed any of that yet. It remains well off its highs, and short-term direction is still unclear.

The $1,525 zone stays the level to watch. History has treated it as a springboard twice already. Whether that happens a third time is still open, and no chart pattern comes with a guarantee.

Disclaimer

This article is for informational purposes only and does not count as financial advice. Cryptocurrency prices are volatile, and past chart patterns do not guarantee future results. Always do your own research and speak with a licensed financial advisor before making investment decisions.