Ethereum Network Activity Hits Peak, but Why This Is Not Necessarily a Bullish Signal
Record Ethereum transfer counts suggest high activity, but historical data and exchange inflows indicate potential selling pressure and a market top.Summary
The Ethereum network is currently experiencing its most active phase, with the 14-day moving average of Ethereum Transfer Counts reaching a record high of 1.1 million in February, suggesting strong adoption. However, this high activity is not necessarily bullish, as historical analysis from CryptoQuant shows similar peaks preceded major market tops in 2018 and 2021, often signaling that investors are moving funds to sell. This concern is compounded by a recent spike in Ethereum Exchange Inflow (Top 10), which hit a one-year high, indicating increased deposits to exchanges, often preceding selling pressure. Analyst CryptoOnchain noted the current on-chain behavior resembles these previous high-risk setups. For a confirmed bullish trend reversal, Ethereum needs to recover to at least $3,000, but in the short term, it may decline toward the $2,000 support level due to unresolved selling pressure.
(Source：BeInCrypto)