The Ethereum network has witnessed a staggering decline in the number of active addresses, plummeting nearly 50% within a month. Data from Etherscan indicates that the count of active daily Ethereum addresses fell from 1,329,193 on February 7 to 746,062 by March 3. This represents a sharp decline of approximately 45%.
This drastic downturn is particularly notable when considering that the figures from February 7 approached the all-time high of 1,420,187 active addresses recorded on December 9, 2022. The current drop is symptomatic of ongoing price weakness, which reflects the broader cryptocurrency market”s challenges in the first quarter of 2026.
The significant decline raises critical questions regarding immediate network demand for Ethereum and its potential price trajectory. However, there are emerging signs suggesting a possible reversal in the short term. At the time of writing, Ethereum”s price has risen by 6.62% over the past 24 hours, trading at $2,078. Concurrently, Bitcoin has also rallied, surpassing the $70,000 mark as investors shift their focus back to major digital assets.
The current recovery appears to be driven by market momentum, with the overall cryptocurrency market capitalization increasing by 4.8% to $2.42 trillion, signifying a heightened interest from buyers. Additionally, perpetual futures open interest rose by 8.8% during this period, while funding rates surged by 21%, indicating that traders are confidently adding leveraged long positions.
As traders monitor key technical levels, Ethereum is facing immediate resistance around the $2,150 mark, an area that has previously limited upward movement. Should the asset sustain a breakthrough above this level, $2,300 may become the next target. Nevertheless, potential downside risks persist; a drop below $2,000 could bring the $1,900 region back into focus, which could jeopardize the ongoing recovery.
The movement of Bitcoin will likely serve as a benchmark for the rest of the market, with investors closely watching its ability to maintain levels above $71,500 as an indicator of continued strength.
