Ethereum On-Chain Activity Hits Record High While ETH Price Stalls Near $3,000
Ethereum (ETH) recorded an all-time high in on-chain usage on December 24, 2025, as seven-day average transactions climbed to about 1.73 million. The surge is attributed largely to Layer-2 rollups settling transactions on Ethereum, increased DeFi activity, and steady stablecoin transfers. This rise in network demand has occurred without major fee spikes, implying improved capacity and efficiency. Large holders (10,000–100,000 ETH wallets) have increased combined balances to over 21 million ETH, while exchange reserves have fallen by more than 4 million ETH in the past year. Offsetting these bullish supply signals, analysts reported roughly $1.4 billion of ETH moved into major exchanges (Kraken, Binance) within 48 hours — a pattern that can signal selling or defensive positioning. Price action remained muted: ETH traded near $2,950–$3,000, up <1% in 24 hours but down ~9% over two weeks and ~14% year-over-year. Traders watch the $3,100 resistance zone; a sustained break could target higher levels, while failure to hold support would increase downside risk. Greater transaction volume also raises EIP-1559 burn, gradually reducing supply growth—an often bullish structural factor—but short-term liquidity and exchange flows continue to dominate price direction.
Neutral
The news presents mixed signals. Record on-chain activity (1.73M seven-day average transactions), rising DeFi and stablecoin flows, and increased holdings by large wallets alongside falling exchange reserves are structurally bullish: higher usage increases EIP-1559 burn and tightens available supply over time. These fundamentals often support price appreciation in the medium-to-long term. However, short-term market indicators are more ambiguous. Approximately $1.4 billion of ETH moved into major exchanges in a 48-hour window — a flow that can precede selling pressure — and ETH has been range-bound near $2,900–$3,100 with diminished volatility and failure to reclaim prior highs. That combination suggests limited immediate upside while the market digests liquidity and exchange flows. Historically, similar patterns (higher on-chain activity with muted price) preceded eventual price moves once liquidity conditions changed — for example, increased burn and reduced exchange supply helped fuel rallies after consolidation periods in past cycles. For traders: short-term bias remains neutral-to-cautious until a decisive break above $3,100 (bullish trigger) or a breakdown below current support (bearish trigger). Medium-term structural outlook leans bullish due to rising burn and sustained Layer-2 adoption, but timing depends on liquidity and macro market sentiment.