Ethereum faces a stark bearish outlook, having shed nearly 60% of its value from its August all-time high near $5,000 and struggling to reclaim the $2,000 level after falling below it in February. On-chain data reveals significant warning signs, including a sharp drop in decentralized exchange trading volume to around $1.02 billion and a loss of approximately 2.6 million monthly active users, while exchange reserves have increased, suggesting growing sell-side pressure.
The second-largest cryptocurrency is confronting one of its most bearish market outlooks as it fails to recover the $2,000 price threshold. Ethereum has declined nearly 60% since its August peak when it approached the $5,000 mark.
A key barometer of blockchain utility, on-chain trading volume across Decentralized Exchanges (DEXs), has slowed considerably. Data shows DEX volume fell to roughly $1.02 billion, a level last seen in late January preceding a severe price drop.
This decline in trading activity coincides with a broader exodus of users from the network. Information from Artemis indicates Monthly Active Users fell from 15.3 million to about 12.7 million, suggesting many participants have sold or idled their holdings.
The shift implies an increase in available supply relative to demand, which typically weighs on price. Demand indicators from centralized exchanges further support this weak accumulation trend.
A critical metric, the Exchange Withdrawing Addresses, which tracks moves to private wallets for long-term holding, declined sharply from 53,382 to 15,081 addresses. This suggests nearly 40,000 investors are now potentially positioned to sell.
Concurrently, Exchange Reserves, tracking ETH held on trading platforms, rose from 15.9 million to roughly 16.1 million. This addition of approximately 168,000 ETH, valued around $334 million, could place additional downward pressure on Ethereum’s price if it enters the market.
