Ethereum Network Activity Breaks Records Even As ETH Price Stalls

bitcoinistPublished on 2026-02-06Last updated on 2026-02-06

The Ethereum network and its price are moving in separate directions as the market faces continued bearish action. On-chain data are showing that the ETH network is performing at one of its most remarkable rates while its price action continues to lag behind due to the ongoing volatile landscape.

All-Time High Network Usage, But Flat Ethereum Price

Given the bearish state of the cryptocurrency market, the price of Ethereum has fallen sharply, causing the leading altcoin to retest the $2,100 threshold last seen in mid 2025. Ethereum’s price may be experiencing sideways movement, but the network is currently performing at a significant rate.

In a post shared on X by Leon Waidmann, head of research at On-chain Foundation, it is noted that even as ETH’s price is still seeing waning activity, on-chain activity has reached all-time highs. This divergence shows a growing discrepancy between ETH’s restrained price action and its growing fundamentals, indicating that actual economic activity is escalating despite market caution.

Waidmann claims that ETH is officially the most undervalued it has been since 2019. Data shows that ETH’s price has fallen about 50% from its all-time high, but its network usage has exploded by over 300% after months of a cool-off.

It is worth noting that the same setup was also observed in January 2019. However, the current pattern is much bigger than the last time, which raises the possibility of a similar result occurring this time, but only bigger. In January 2019, when the setup took place, the price of Ethereum was struggling at the $1,200 mark, and crypto participants believed that the altcoin was dead.

Meanwhile, over 1.2 million wallet addresses were active during the period and were using the network. As a result, Decentralized Finance (DeFi) was being built in the bear market phase. Following the setup, ETH’s price witnessed a bounce from $1,200 to the $4,800 mark, representing an over 3,300% increase.

For January 2026, ETH’s price chopped in half from $6,400 to $3,300, and the market has started to treat the altcoin like it’s dying. However, as seen in the blue area marked on the chart, there are now over 3.4 million active addresses with contracts.

This marks a 3x growth compared to the 2021 peak, and an absolute record high. “In 2019, everyone ignored it. Then, ETH ripped faces off for 2 years straight. The setup today is identical – just the numbers are 3X bigger,” Waidmann added. When this reprices, Waidmann has predicted a violent upward move for Ethereum.

A Record High In Transactions Processed

According to a report from Everstake, the Ethereum network has also reached a historic milestone in terms of transactions processed on the blockchain. In January 2026 alone, the network processed 70 million transactions, representing the highest monthly activity in its entire existence.

Everstake noted that this substantial number of transactions processed is all taking place in a very unfavorable market climate. Should this growth continue when sentiment flips positive, it could change the course of ETH’s price, shifting it to the upside once again.

ETH trading at $2,101 on the 1D chart | Source: ETHUSDT on Tradingview.com

Related Questions

QWhat is happening to the Ethereum network activity and its price according to the article?

AThe Ethereum network is breaking records with all-time high activity and usage, while its price is experiencing bearish, sideways movement and has fallen sharply.

QWho is Leon Waidmann and what did he note about ETH's current state?

ALeon Waidmann is the head of research at On-chain Foundation. He noted that on-chain activity has reached all-time highs even as ETH's price sees waning activity, and that ETH is the most undervalued it has been since 2019.

QHow does the current market setup for Ethereum compare to the one in January 2019?

AThe current pattern is described as identical to the January 2019 setup but on a much larger scale, with numbers that are 3 times bigger. In 2019, there were 1.2 million active addresses, while today there are over 3.4 million.

QWhat historic milestone did the Ethereum network reach in January 2026 according to Everstake?

AAccording to a report from Everstake, the Ethereum network processed 70 million transactions in January 2026, representing the highest monthly activity in its entire history.

QWhat was the result for ETH's price after the similar setup that occurred in January 2019?

AFollowing the January 2019 setup, ETH's price witnessed a bounce from $1,200 to the $4,800 mark, representing an over 3,300% increase.

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