Ethereum is flashing a rare disconnect between price and fundamentals, a setup that hasn’t been seen since the depths of the last major bear market.
Key Takeaways
- Ethereum usage is at record highs while price remains far below its peak, echoing the 2019 setup.
- Liquidations have reset leverage, with $2,100 flagged by traders as the key decision level.
- The gap between fundamentals and price is raising questions about a potential mispricing.
Network usage has surged to all-time highs, while ETH continues to trade roughly 50% below its peak, leaving analysts increasingly focused on whether the market is mispricing the asset.
Ethereum Network Activity Hits Record Highs
On-chain data shows Ethereum’s active addresses interacting with smart contracts climbing to around 3.4 million, a record level and nearly three times higher than the peak seen during the 2021 bull cycle.
This rise in activity comes despite a prolonged price drawdown, pointing to sustained usage across DeFi, infrastructure, and on-chain applications even as market sentiment remains fragile.
A Familiar Pattern From the 2019 Lows
A similar divergence played out in early 2019. At the time, Ethereum was trading near $1,200 and widely dismissed by the market. Yet roughly 1.2 million addresses were actively using the network as developers continued building during the bear market. That period ultimately marked the start of a powerful multi-year rally that carried ETH to nearly $4,800.
Price Weakness Versus Growing Adoption in 2026
The current cycle shows an even sharper contrast. Ethereum’s price has been cut roughly in half from its peak near $6,400, while network participation has expanded far beyond previous highs. Active addresses with contract interactions now sit at about 3.4 million, highlighting how the scale of adoption in 2026 dwarfs the levels seen during the last major accumulation phase.
Liquidations Reset Leverage Across the Market
Recent volatility has triggered heavy deleveraging. More than $312 million in Ethereum positions were liquidated over a short period, with long positions accounting for the majority of the losses. This flush of leverage suggests that speculative excess has been reduced, potentially lowering immediate downside risk if selling pressure begins to ease.
Key Levels Highlighted
Market analyst Daan Crypto Trades pointed out that Ethereum has successfully defended the $2,100 area on a second test, reinforcing it as a must-hold zone for bulls. According to his analysis, this horizontal range is one of the most important areas to watch, as it has repeatedly acted as both support and resistance across multiple market cycles.
$ETH Held the big $2.1K level on the second test as well.
This is a must hold area for the bulls. These horizontal area’s are all you need to be watching for the Ethereum price in my opinion.
Break one, target the next. Works both ways obviously 🙂 https://t.co/WTU7uqexHB pic.twitter.com/Ac9oYct227
— Daan Crypto Trades (@DaanCrypto) February 4, 2026
He notes that Ethereum’s price structure remains highly level-driven at this stage. A clean break above nearby resistance levels would open the path toward the next upside target, while a loss of the $2.1K region could accelerate downside momentum toward lower support zones. In his view, Ethereum is currently in a binary phase where reactions at these horizontal levels matter more than indicators or narratives, with price direction likely to follow whichever level gives way first.
From a technical standpoint, Ethereum remains under pressure in the near term. RSI has spent time near oversold territory, reflecting stretched selling conditions, while MACD remains negative but shows early signs of stabilizing. The $2,100-$2,150 zone has emerged as a critical support area, with repeated defenses attracting close attention from traders.
Is Ethereum Being Mispriced Again?
The broader question facing the market is whether Ethereum is once again being underestimated. With network activity at record highs and price still lagging well behind prior peaks, the current setup echoes a period when fundamentals quietly improved before price followed. Whether history rhymes again will likely depend on how ETH behaves around key support levels in the weeks ahead.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/market/ethereum-network-hits-record-usage-as-price-lags-far-behind/