Ethereum is showing signs of strength on two critical fronts at the same time. On-chain activity has climbed to record levels, reflecting heavier real usage across the network, while long-term technical structure is leaning towards upside continuation.

Together, these signals suggest that Ethereum’s current phase may be more than just sideways movement, as underlying data points to sustained demand and constructive price behavior.

Ethereum’s price action is turning bullish with a steady increase in recent days. Notably, on-chain data shows that this increase is on top of steady on-chain activity in recent days.

Data from Ethereum’s on-chain activity shows that daily transactions recently climbed to approximately 2.8 million, setting a new all-time high for the network. Interestingly, this figure stands out not just as a record, but because it is roughly 64% higher than the daily transaction levels observed during the peak of the 2021 bull market. 

The chart data from Sentora illustrates a progression showing Ethereum’s transaction count rising steadily over the years and spiking up in early 2026.

Comparing the transaction activity to 2021 adds more context considering the intense amount of activity that the Ethereum network was witnessing at the time. Back then, Ethereum was at the center of an altcoin season and NFT boom, all of which contributed to a spike in transaction activity and a push to new price highs.

The fact that Ethereum is now processing significantly more transactions per day compared to 2021 shows that its network usage has grown above speculative behavior. The steady climb in transaction activity shows the sheer amount of usage across decentralized finance and stablecoin settlement, among many others.

Ethereum Daily Transactions Chart. Source: @SentoraHQ On X

Technical analysis of Ethereum’s market capitalization on the three-week candlestick timeframe shows the cryptocurrency is still trading in a zone of stability. Particularly, technical analysis done by crypto analyst Egrag Crypto suggests that Ethereum is in reaccumulation within a macro uptrend.

A look at the 3-week timeframe shows that ETH’s market cap is holding above the 21 EMA, respecting the rising macro trendline, printing higher highs & higher lows, and compressing under historical resistance. That is constructive behavior, not weakness. 

History shows that periods where Ethereum’s market cap held above the 21 EMA on this timeframe have led to expansion phases, whereas sustained moves below it have marked bear market conditions. 

At present, the structure indicates the EMA support is being defended. From a probabilistic standpoint, the current setup leans toward continuation rather than breakdown. A move through the overhead resistance band would likely confirm an expansion phase and allow Ethereum to go on a 70% to 75% bullish continuation.

Market Cap ETH. Source: @egragcrypto On X

On the other hand, a bearish outcome will become possible if the price action loses the 21 EMA on the three-week chart. This could validate a deeper 25% to 30% correction toward the lower trendline, but this scenario carries a lower probability.

Featured image from Unsplash, chart from TradingView

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