Ethereum on-chain activity hits historic highs as ETH exchange outflows accelerate
Ethereum (ETH) is seeing a major on-chain rebound even as spot price remains under bearish pressure. The article says network activity across the Ethereum ecosystem has reached record levels, with daily active addresses near the highest range ever. Historical references include ~720,000 active addresses (2018) and ~800,000 (2021 bull market peak), while the current 2025–2026 cycle pushes past 1M and peaks above 1.3M—implying more real usage than the prior bull-market top.
A key demand signal cited is an exchange withdrawal trend. The ETH on-exchange balance is reported at about 14.5M ETH, claimed as the lowest in history (after the crash), and ~6M ETH have been removed from exchanges over the past 2.5 years. During volatility, inflows to exchanges are usually steady, but the article notes the opposite—suggesting buyers are not preparing to sell back. The piece quotes Leon Waidmann (Lisk research head) in support of the “rising engagement” thesis.
For price timing, analyst Ali Charts points to the “Ethereum Delta Price” metric, linking investor cost basis to miner production cost. If the pattern repeats, ETH’s potential bottom is suggested near $700, with a possible retest of the $700 area before a sustained uptrend resumes. Current ETH price is stated around $1,657 on the 1D chart.
Bullish
The news is ultimately bullish for trading because it highlights strengthening Ethereum usage and a supply-demand squeeze signal: (1) ETH on-chain activity and daily active addresses are at or near historic highs, and (2) ETH exchange balances are declining sharply, implying coins are being removed from sell-pressure venues. Historically, periods where network activity rises while exchange outflows persist often precede better price resilience—similar to prior cycles where demand/usage improved before price fully caught up.
In the short term, the article also flags bearish price conditions and a possible ETH retest around $700 (based on the Delta Price metric). That means traders may still see volatility and dip-buying opportunities, rather than an immediate straight-line rally. However, the exchange-outflow backdrop can limit downside depth and improve the probability that dips are bought.
In the long term, if the current level of active addresses (above 1M and peaking above 1.3M) continues, it supports the case that Ethereum’s ecosystem demand is durable—potentially strengthening confidence in staking, DeFi, tokenization, and L2-led growth narratives. Net effect: bullish bias, but expect pullbacks as traders reconcile the “strong chain, weak price” divergence.