Ethereum is experiencing a divergence between rising network fundamentals and bearish price action in late March 2026. Weekly active addresses on the Ethereum mainnet have hit a record 3.64 million, reflecting a 97% annual increase. Concurrently, the supply of ETH on exchanges has fallen to a 10-year low amid strong outflows, signaling potential long-term holding. Despite these on-chain strengths, technical analysts indicate the price structure remains in a distribution phase, with ETH trading below all key moving averages.
Data shared by Leon Waidmann highlights that weekly active addresses on the Ethereum mainnet reached 3.64 million, marking the highest level ever recorded. This reflects a steady 97% increase in user engagement over the past year.
Meanwhile, data on exchanges shared by Quinten reveals the supply of ETH held on exchanges is at a record low since 2016. This includes a large one-day movement of $1.67 billion worth of ETH being withdrawn from exchanges on March 22.
Despite significant on-chain activity, price action presents a contrasting picture. The Composite Trader indicates that current chart formations show a transition from a stable range to a distribution phase.
An analysis from Tradingview on March 26 noted that on the daily chart, Ethereum is trading below all major moving averages. This price range has formed between $1,800 and $2,300, with a low of $1,747.
The latest decline around the price range of $2,190 to $2,200 suggests persistent bearish pressure. If support levels around $2,000 to $2,050 are broken, ETH may test lower price points.
