ETH records Q1 usage surge as traders watch $1,300–$1,400
Ethereum (ETH) posted record network usage in Q1 2026, with 13.2M monthly active users (+53.5% QoQ) and 200.4M transactions (+38% QoQ), per Token Terminal data cited by analysts. Activity was broad across stablecoins, DeFi, tokenized assets, and trading apps—suggesting demand is not limited to one segment.
Layer 2 networks played a key role by enabling lower-fee transactions while keeping Ethereum as the settlement layer. That cost efficiency can attract both retail usage (wallets, swaps, payments) and developer onboarding across sectors like finance, gaming, and payments.
Despite the bullish usage backdrop, ETH price action remains pressured by wider market conditions. Traders are focusing on potential downside liquidity near $1,300–$1,400, viewing it as a likely sweep/stop-trigger zone before a stronger recovery. Some market watchers argue ETH could bottom before Bitcoin (BTC), based on liquidity movement and relative price behavior.
Key takeaway for traders: ETH’s fundamentals (users + transactions) strengthened in Q1, but near-term direction still hinges on whether $1,300–$1,400 clears remaining sell pressure and flips into buying support.
Neutral
Ethereum’s Q1 metrics (13.2M monthly active users and 200.4M transactions) are a constructive fundamental signal for ETH, and the Layer 2-driven fee efficiency supports continued on-chain demand. However, the article explicitly notes that ETH price is still under pressure from broader market conditions. That mix usually leads to a neutral near-term trading stance: traders may see usage as a reason to buy dips, but price confirmation likely requires technical liquidity conditions.
Historically, when network usage rises while price lags, markets often wait for “liquidity cleanup” (e.g., stop runs through a defined support band) before a sustained trend emerges. Here, $1,300–$1,400 is framed as the zone to clear downside liquidity. If ETH successfully sweeps that range and then reclaims higher liquidity, odds improve for a rebound and for relative outperformance versus BTC. If the level fails and sell pressure persists, the bullish usage data may not prevent further volatility in the short run.