Ethereum price could be on the verge of a strong bearish breakdown despite having some of the best fundamentals. The ETH token was trading at $3,000, above this week’s low of $2.790.
Ethereum Network Metrics Have Soared
Data compiled by Nansen shows that Ethereum is firing on all cylinders even as the ETH price remains in a bear market after falling by 40% from its highest level in 2025.
The data indicate that network growth has accelerated since the Fusaka upgrade in December last year. Transactions have increased by 40% over the past 30 days, reaching over 66.3 million.
This transaction growth was mostly driven by the activity in the stablecoin and decentralized finance (DeFi) industries. Also, the number of active addresses rose by 55% to over 14.6 million. Transactions and users continue to accelerate, a trend that may persist.
The Ethereum network has boomed in the past few months as the number of stablecoin users and activity has soared. For example, the network processed more than $8 trillion in stablecoin transactions in the fourth quarter. In the past 30 days alone, it has processed over $1 trillion in stablecoin volume.
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Ethereum usage is likely to continue accelerating in the coming months, following the developers’ planned upgrades this year. The most notable of these upgrades will be Glamsterdam, which will improve Maximum Extractable Value (MEV) and parallel transaction processing, leading to faster speeds.
Therefore, the Ethereum price has remained under pressure despite these challenges, as gold and silver prices have risen to record highs. Their performance has pushed more investors into these metals.
On the positive side, Ethereum and other cryptocurrencies often rally following strong surges in gold and silver prices. This likely explains why spot Ethereum ETFs have continued accumulating assets. Additionally, the staking ratio has continued to rise this year.
Ethereum Price Technical Analysis
Technical analysis suggests that the Ethereum price has more downside in the near term. It remains below the Supertrend indicator, a sign that bears remain in control.
The coin formed a death cross pattern on November 24, as the 50-day and 200-day Exponential Moving Averages (EMAs) crossed.
Ethereum has moved below the 50% Fibonacci Retracement level at $3,175. It has also formed a bearish flag pattern, which is made up of a vertical line and a channel.
Therefore, the most likely scenario is where the ETH price has a major bearish breakdown. If this happens, the next key level to watch will be at $2,500. A move above the upper side of the channel at $3,400 will point to more gains by invalidating the bearish flag pattern.
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