Ethereum's network has seen a spike in address activity recently, yet ETH's price continues to fall. Analysts speculate on a potential rebound.
Active Addresses Surge—Will Price Catch Up?
In the past three days, Ethereum's active addresses have increased from 411,000 to 503,000, a 22.3% boost. Despite this significant rise, ETH's price has dropped from $2,158 to $1,923. Typically, rising network activity suggests increased market demand and higher prices, but this time the trend is reversed. Historically, such scenarios could indicate short-term selling pressure.
Q1 Slump Could Indicate a Rebound
Ethereum has faced a challenging start to 2025, with a 42.9% price decline in Q1. Despite this, historical performance shows that weak early-year starts often precede significant rebounds in Q2. For instance, in 2023, ETH experienced a 52.15% rise in Q1, a 5.74% dip in Q2, followed by a 36.66% surge in Q4. Such analysis suggests potential price growth due to Q2’s historically favorable conditions.
Ethereum’s Recovery: A Bitcoin 2020 Repeat?
Ethereum's current price movement is reminiscent of Bitcoin's 2018–2020 cycle. ETH is in a re-accumulation phase, similar to BTC before its 2020 breakout. It is facing rejections at key levels, which is part of the normal price discovery process. Like Bitcoin during the pandemic, Ethereum now deals with economic and trade war uncertainties, potentially affecting its recovery.
With growing network activity and historically strong Q2, Ethereum might be poised for a rebound. Institutional interest could also play a crucial role in shaping future price dynamics.
