Ethereum is facing one of the most bearish outlooks in the market as the altcoin struggles to reclaim the $2,000 level after falling below it on February 5. On a broader scale, the losses are even more severe, as Ethereum has shed nearly 60% of its value since its all-time high in August, when it came close to crossing the $5,000 threshold.
On-chain activity has slowed, with DEX trading volume over the past 24 hours dropping to roughly $1.02 billion. The last time volume fell below this level was January 24, followed by a 6.16% 24-hour decline, and a few days later the altcoin declined nearly 40%, dropping from $3,041 to $1,815.
Monthly Active Users have declined from 15.3 million in February to roughly 12.7 million at press time, with around 2.6 million users leaving the network during this period. Off-chain indicators tracking Ethereum activity on centralized exchanges point to weak accumulation trends, including a sharp drop in Exchange Withdrawing Addresses—from 53,382 addresses to 15,081. Exchange reserves rose from 15.9 million ETH to roughly 16.1 million ETH, adding about 168,000 ETH to exchange balances, a development valued at roughly $334 million. If a large portion of this supply enters the market through sell orders, it could place additional pressure on Ethereum’s price and further dampen the altcoin’s near-term outlook.
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