Ethereum is showing signs of accelerating network activity even as its price undergoes a cooling phase that has pressured many leveraged traders out of the market. The contrast between growing on-chain demand and a resetting price structure is reinforcing speculation that ETH may be preparing for the next stage of its long-term cycle.
Blockspace usage across the Ethereum network has reached a new all-time high in 2025, underscoring sustained demand despite the recent pullback in price. This comes at the same time that long-dormant ICO-era wallets — untouched for more than a decade — have suddenly moved large sums of ETH, injecting new curiosity into the market.
Ethereum network fundamentals remain strong
Unlike previous corrections driven by weakening usage or declining participation, the latest downturn in price has occurred while Ethereum’s blockspace has continued to strengthen. Daily gas consumption — a core indicator of network activity — has been climbing nearly uninterrupted for close to ten years. Even during market pullbacks, developers, traders and applications have consistently kept the chain busy.
The growing demand for blockspace demonstrates that Ethereum’s role as a settlement layer remains firmly intact. It also suggests that on-chain utility continues to support the ecosystem even when speculative trading cools.
Dormant ICO wallets awaken after more than 10 years
One of the most surprising developments this week was the sudden movement of ETH from a wallet belonging to an early ICO participant. The address, inactive since Ethereum’s genesis, transferred 200 ETH after more than a decade of silence.
Originally, the wallet obtained 1,000 ETH during the 2014 initial sale for just $310 — a stash now valued at more than $3.1 million. While the reason for the movement remains unknown, the transfer has raised questions across the community. Large early wallets generally move funds during pivotal market phases or structural shifts.
Although wallet movements alone do not predict price direction, the timing — during a reset within Ethereum’s long-term cycle — has drawn attention across analysts and traders.
Price in accumulation territory despite volatility
Even with healthy network activity, Ethereum’s price currently sits in its long-term accumulation band, as identified by rainbow valuation metrics. Historically, these lower valuation regions have produced the strongest long-term entry opportunities before major upward cycles.
For long-term holders, these zones typically represent periods of quiet accumulation rather than periods driven by hype or high visibility. Across every major ETH cycle, rallies have consistently begun when sentiment is low and attention is focused on short-term pullbacks.
Liquidations shake out speculative traders
The recent price reset has not been gentle for leveraged participants. Well-known whale Machi suffered new liquidation losses as ETH retraced, pushing his total realized losses beyond $18.9 million. His brother, who exited earlier, avoided the latest hit while still remaining profitable overall.
These events reflect the broader unwind happening across speculative leverage in the market. While painful for some traders, such resets tend to strengthen long-term price structure by clearing excessive leverage and repositioning the market for sustained growth.
Technical structure hints at a reset rather than a breakdown
ETH remains below heavy resistance in the $3,400-$3,500 region. Sellers have consistently defended this zone and will continue to do so until a decisive breakout occurs. However, technical indicators do not currently show a structural breakdown.
The RSI is hovering near oversold levels rather than confirming a deeper collapse. Meanwhile, the VRVP highlights a dense area of trading activity between $3,000 and $3,100 — a level historically favored by buyers. This region has acted as a springboard during previous cycles.
The CMF shows cautious inflows, suggesting buyers have not fully returned but are not exiting either — a familiar signal during the early stages of cycle resets.
Sentiment vs. structure: where Ethereum stands now
ETH is not in a euphoric phase. It is not in a distribution zone. It is in a transition period — one where blockspace demand is climbing, leverage is being flushed out, and price is revisiting long-term accumulation levels.
Periods like this rarely feel bullish in the moment. Historically, they are the points where long-term positions are established while the market debates whether the asset has “lost momentum.”
Despite the noise, Ethereum continues to show:
• record blockspace demand • long-term holders showing interest again • price retesting accumulation territory • leverage unwinding rather than structural weakness
The next directional trend may depend on how buyers behave at the $3,000-$3,100 consolidation zone. Holding this level would keep cycle momentum intact. Losing it could add short-term pressure before any longer-term recovery attempt.
For now, the Ethereum market appears weak on the surface but structurally healthy underneath — a combination that has historically preceded major cycle expansions rather than ended them.
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