Ethereum’s network is heating up—active addresses just surged 22.3% in three days. But while activity is rising, ETH’s price has dropped.

Is this a temporary disconnect, or is a rebound on the horizon? With Q2 historically strong, traders are watching for a potential breakout.

Active Addresses Surge 17%—Will ETH Price Catch Up?

Ethereum news is seeing its network buzzing with activity. Per Santiment, in just three days, active addresses shot up from 411,000 to 503,000.

That’s a massive 22.3% jump. Even more impressive! The network experienced a 17% hike in active addresses over the last 24 hours.

Network usage increases with more users, which typically indicates positive market conditions.

More network engagement drives increased market demand, which typically results in higher prices

But this time, ETH’s price has failed to match the recent surge in network activity.

Historically, active address growth combined with price decline typically indicates short-term selling pressure from whales or trader caution.

But the steady increase in Ethereum network activity suggests that buying pressure may be developing beneath current market conditions.

Ethereum’s Q1 Slump Could Set the Stage for a Strong Rebound

Meanwhile, as observed in multiple Ethereum news reports, it has experienced a challenging beginning to 2025.

The 42.9% Q1 decline positions this quarter among the most severe first quarters in recent history.

But the current situation is not an exception to what has happened before.

ETH typically experiences weak performance during the first months of the year before delivering significant price increases.

The average Q2 market returns amount to +66.84%, which indicates this period is favorable for price recovery.

Moreover, the adoption of institutions for Ethereum continues to grow. The entry of big banks as Ethereum validators combined with upcoming ETH ETFs that enable staking could lead to a supply squeeze.

The reduced circulation of ETH will create stronger price stability throughout the long term.

Conversely, market participants hold conflicting opinions about the current situation.

The retail trader sentiment shows bullishness (0.71) while professional investors maintain bearishness (-2.49).

The market data indicates potential price swings before establishing an upward trend.