TL;DR

Ethereum active addresses hit 674K, signaling growing network adoption and renewed on-chain participation. EIP-1559 continues burning ETH, keeping net emissions near zero and tightening overall token supply. Support zones at $3,200–$3,350 and $2,950–$3,050 could spark a rebound toward $4,000.

Rising Network Usage and On-Chain Growth

Ethereum (ETH) is recording higher on-chain activity, with daily transactions reaching the highest level in over a year. According to analyst Cas Abb, the number of active and new wallet addresses is rising, as more people are joining the network. This is an indication of actual adoption and increasing network demand, and not speculation in the short-term market.

#Ethereum is showing signs of quiet but strong growth onchain.

Daily transactions have climbed to their highest levels in more than a year, showing that usage is not just steady but accelerating.

More users are engaging, with active addresses and new addresses both trending… pic.twitter.com/YXPdj7RMtM

Merlijn The Trader reported that active addresses have climbed above 674,000, the highest since the previous cycle peak. In 2021, a similar increase in wallet activity came before a strong market rally. The current rise in activity shows that Ethereum’s network participation is expanding again.

Supply Pressure Eases as ETH Burns Continue

Ethereum’s supply is tightening as the EIP-1559 mechanism continues to burn ETH. As Cas Abb observed, net emissions remain close to zero even when the market swings. This situation with limited supply and increasing consumption gives a foundation for a stable market.

Institutional interest also remains present. Data from SoSoValue shows that Ethereum ETFs saw $154.3 million in inflows last week. Investors continue to allocate to ETH, taking advantage of price dips during this correction phase.

Price Action and Key Technical Levels

Ethereum was trading at $3,550 at press time, with a 24-hour volume of approximately $20 billion. The asset has increased by 3% in the last 24 hours but has declined by 9% weekly.

Michaël van de Poppe identified an immediate bounce zone of between $3,200-$3,350, and a critical long-term entry zone of between $2,950-$3,050 in case the market continues downward.

I wouldnt be surprised if $ETH is going to go to the lows one more time and then reverses back up.

Ideally, its down around 15% from the high and thats not a bad spot to start accumulating your positions.

The next stop, if it goes back up, is going to be north of $4K. pic.twitter.com/cxw0Fz5HaX

Trading volume increased during the decline, often a sign of strong market reactions. The Relative Strength Index (RSI) sits in a neutral-to-weak area, showing that the market has cooled but is not oversold. Analyst Ali Martinez also highlighted $2,924 and $2,750 as key support levels to monitor.

Market Outlook and Seasonal Context

Van de Poppe’s outlook suggests Ethereum could recover toward $4,000 if current support zones hold. Historical data from CoinGlass shows that August has been mixed for ETH, with double-digit losses in 2023 and 2024, but a 36% gain in 2021 during a bull phase.

There has also been an interest in social media, as Eric Trump shared on X, asking followers to consider buying the dip. Traders are now monitoring on-chain data, fluctuations in supply, and ceiling levels to determine the next direction in price.