Ethereum Holds $3.6K as Network Activity Nears Record Highs

Ethereum network momentum is picking up pace again, with daily transactions climbing close to all-time highs and price action consolidating near key levels. ETH was trading at $3,658 at press time, up 2.2% in the last 24 hours, signaling growing interest amid strong on-chain metrics.

Price Action and Market Behavior

Ethereum’s price remains within a steady range, up 30% from a month ago despite a slight 4.7% dip over the past week. The current trading band between $3,380 and $3,874 reflects a phase of consolidation, where buyers and sellers are locked in a neutral standoff.

Technical indicators also reflect this sideways momentum. The price is just under the 20-day simple moving average at $3,685, and the Relative Strength Index (RSI) sits at 58 — a neutral zone. The awesome oscillator and momentum indicators suggest modest strength but no clear directional trend.

Support remains firm at $3,450, while a push above $3,685 could open the door for a test of $3,920.

Activity Surge Despite Volume Dip

While price holds steady, overall trading activity appears to be slowing. Daily trading volume is down 15.6% to $22.2 billion, with derivatives volume slipping over 20% to $77.2 billion. A marginal decline in open interest shows a drop in active leveraged positions.

However, Ethereum network momentum tells a different story. On-chain activity is booming, with daily transactions hitting 1.87 million on August 6 — nearing the all-time high of 1.96 million set in January 2024. This rise indicates that user engagement on the Ethereum blockchain remains strong despite market uncertainty.

Stablecoins and Legislation Fuel Demand

A large portion of the transaction growth is driven by stablecoin activity, particularly Tether (USDT) and USD Coin (USDC). This uptick coincides with the passing of the U.S. GENIUS Act, a major legislative milestone that clarified regulatory guidelines for dollar-backed stablecoins. As a result, confidence in stablecoin infrastructure — and by extension, Ethereum — is returning.

This rebound is helping sustain Ethereum network momentum, reinforcing the chain’s role as the backbone of decentralized finance (DeFi) and tokenized assets.

Institutional Investors Accumulate ETH

Institutional interest is surging. Nate Geraci, president of NovaDius Wealth, shared that ETH treasury-holding companies and U.S. spot ETH ETFs have each acquired around 1.6% of the total ETH supply since early June — a combined 3.2% stake.

According to Strategic ETH Reserve data, 64 companies now hold 3.03 million ETH valued at approximately $11.8 billion. Meanwhile, net assets in U.S. spot ETH ETFs have swelled to $20.61 billion.

This institutional accumulation supports the ongoing Ethereum network momentum, hinting at deeper capital inflows and long-term conviction in Ethereum’s role as an asset class.

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