What Happened: Record Transaction Volume
ETH traded around $2,950 at the time, well below its 2021 and 2025 peaks.
The analyst attributed the surge to Layer-2 settlement activity, increased DeFi usage and steady stablecoin transfers. The growth occurred without corresponding fee spikes, indicating improved network efficiency under higher demand.
On-chain data from late December showed large holders adding positions, with wallets containing between 10,000 and 100,000 ETH increasing combined balances above 21 million coins.
Exchange reserves declined by more than 4 million ETH over the past year.
Why It Matters: Fundamental Disconnect
ETH traded just under $3,000 at press time, up less than 1% in 24 hours and flat over seven days. The token declined nearly 9% over two weeks and approximately 14% over the past year.
The cryptocurrency moved within a tight range between $2,900 and $3,000, with volatility lower than earlier in the quarter.
Analysts continue monitoring the $3,100 level, which has capped multiple rallies in recent years.
