Ethereum’s price could face further downside despite recent network growth, according to on-chain analysis. A key indicator suggests ETH might revisit the $700 range, historically associated with market bottoms, before initiating a new bullish phase. Meanwhile, the blockchain’s user base continues to expand, nearing 200 million non-empty wallets.
Ethereum has rebounded after approaching a support level near $1,500, but its broader market trend remains bearish. An important on-chain metric is poised to revisit historically significant territory, suggesting potential further downside.
Crypto analyst Ali Martinez said Ethereum’s Delta Price metric has accurately pinpointed the last two major market bottoms. “If previous market patterns repeat, Ethereum risks falling toward the $700 range again before beginning its next upward trend,” Martinez stated.
Despite negative sentiment, Ethereum’s network growth continues to accelerate. Data from Santiment shows the blockchain now has nearly 195 million non-empty wallets, significantly more than Bitcoin’s count.
Santiment attributed much of this expansion to Ethereum’s strong presence in decentralized finance, staking, and broader on-chain activity. The network is approaching a milestone of 200 million wallets.
Derivatives market activity around Ethereum is also showing signs of recovery. CryptoQuant observed that Binance recently recorded a new all-time high in Ethereum open interest measured in ETH terms.
Binance now accounts for over 44% of total Ethereum open interest. The exchange’s weekly average Taker Buy/Sell Ratio has climbed, indicating a gradual return to buying activity after months of stronger selling pressure.
