As the cryptocurrency market shows signs of fatigue, Ethereum (ETH) has delivered an exceptionally impressive data performance. According to the latest on-chain statistics, in the last week of May 2025, the number of weekly active user addresses in the Ethereum ecosystem surpassed 17.4 million, setting a new historical high. Does this mean that the ETH price is brewing for a new round of breakthroughs?
Ethereum user participation has exploded, and L2 networks have become the main force.
Data shows that the number of active addresses increased by 16.95% week-on-week, reaching 17,409,932, surpassing not only the peak at the end of 2024 but also setting a new historical record. Unlike in the past, this explosion is mainly concentrated on single-chain interactions, while cross-chain activity has actually decreased by 4.33%, indicating that users are more focused on specific ecosystems.
What is even more concerning is the continuous rise in the dominance of Layer 2 networks (L2). The number of active users of scaling solutions such as Optimism, Arbitrum, and Base is already 7.55 times that of Layer 1 (L1), with a growth rate of up to 18.43%. Since mid-2023, Ethereum's activity has been steadily increasing, reaching a critical turning point.
This wave of growth clearly reflects the explosive demand for decentralized applications (dApps), staking, trading, and Layer 2 aggregation. The Mlion.ai on-chain data dashboard also synchronously captures the active changes in the L2 ecosystem, prompting users to pay attention to potential ecological explosion opportunities.
The ETH price is under technical pressure, and a breakthrough will require further waiting.
However, in stark contrast to on-chain data, ETH's market performance has not been satisfactory. On June 5, the ETH/USD quote was $2,563.4, with a daily decline of 1.04%. From a technical perspective, the price has fallen below the key 50-period EMA ($2,587.8), breaking the support trend since May 28.
On the 4-hour chart, the Directional Movement Index (DMI) shows weak bullish momentum. Although the positive indicator (+DI) is slightly higher than the negative indicator (-DI), both are close to the average, and the trend direction is unclear. Additionally, while intraday trading volume briefly reached 184 ETH, it failed to trigger a strong rebound, indicating insufficient confidence among bulls at present.
The Mlion.ai technical analysis module also synchronously issued a warning that ETH is currently facing strong resistance around $2,588. If there is no significant breakthrough in the short term, the risk of a pullback still exists.
Relying solely on user growth makes it difficult to drive prices to new highs.
Despite the surge in Ethereum network activity, the market has long verified that on-chain fundamentals and price trends are not synchronized. ETH is currently still quite a distance from the historical high of $4,878 set in November 2021. More importantly, the surge in active addresses indicates an expansion of the potential user base, but is not enough to directly drive prices upward in the short term.
Historical experience shows that user growth is a guarantee of long-term value, but to achieve new price highs, stronger capital inflows and market sentiment cooperation are still needed. The Mlion.ai market sentiment model currently indicates that the overall buying momentum for Ethereum is still weak, and new catalysts are urgently needed to ignite the market.
Conclusion: Huge potential, waiting patiently.
The surging activity of the Ethereum ecosystem is undoubtedly a positive development, but to see prices return to their peaks, more patience may be required. The enthusiasm for multi-chain interactions has temporarily slowed, while the rise of the L2 ecosystem is solidifying the long-term value of ETH. As long as market sentiment warms up and capital refocuses, the revival of Ethereum is just a matter of time.
For investors who want to position themselves ahead of the next bull market, leveraging Mlion.ai's on-chain data tracking and market sentiment monitoring features is a wise move. In the midst of market fluctuations, only those who seize the opportunity can grasp the real chance.
Disclaimer: The above content is for information sharing only and does not constitute any investment advice!
