Ethereum daily active addresses surge to multi-year high — price remains bearish
Ethereum mainnet saw a sharp uptick in daily active addresses, approaching about 1.3 million on January 16, 2026, briefly matching or exceeding usage on some Layer 2 networks, according to Etherscan. The surge signals renewed on-chain activity and suggests increased demand for Ethereum L1. However, ETH price has not responded: ETH declined ~1% in 24 hours and roughly 11% over the past week. Technical indicators remain bearish — trading below the 7-day SMA (~$3,134), 30-day SMA (~$3,101) and well under the 200-day SMA (~$3,667). The article notes a divergence between fundamental on-chain metrics and market price, emphasizing that higher network activity does not guarantee immediate buying pressure. It also references PR firm Outset PR and its data-driven media strategy (Outset Data Pulse and Syndication Map) as a way to shape market narratives. Traders should weigh improving on-chain fundamentals against weak technicals and broader market conditions when assessing ETH positions.
Neutral
The news presents a clear fundamental positive — a multi-year high in daily active addresses on Ethereum L1 indicates renewed user activity and potential demand. Historically, spikes in on-chain activity can precede price rallies if sustained and accompanied by increased token flows to exchanges or rising buying volume. However, current market structure and technicals are firmly bearish: ETH is below short-, medium- and long-term SMAs, and recent price action shows an 11% weekly decline. That technical weakness suggests sellers remain dominant and could absorb short-term demand. Additionally, network activity alone doesn’t equal economic demand (transactions can be driven by bots, airdrops, or concentrated demand), so the signal is noisy. Therefore, the immediate market impact is likely neutral: traders may watch for confirmation — sustained active-address growth translating to higher fees, rising net inflows, or a break above key moving averages — before turning bullish. Short-term implication: potential volatility and trading opportunities around on-chain headlines, but risk of further downside until technicals improve. Long-term implication: if on-chain engagement persists and coincides with macro tailwinds, it could strengthen ETH’s fundamental case and support a bullish transition.