Ethereum Holds $3.6K Support as Daily Transaction Activity Hits All‑Time High

Ethereum was trading at $3,658 at press time, posting a 2.2% gain over the last 24 hours as on-chain metrics show a surge in transaction activity.

The price remains 30% higher than it was a month ago, even though it has slipped 4.7% over the past week. As buyers and sellers balance out, the current weekly range of $3,380 to $3,874 represents a period of sideways movement. 

Meanwhile, there are indications that market activity is slowing down. Daily trading volume has dropped 15.6% to $22.2 billion, while derivatives volume is down more than 20% to $77.2 billion, according to Coinglass data. A slight decline in open interest indicates that there are fewer active positions in the market.

Network activity climbs as stablecoin demand returns

Ethereum’s eth1.61%Ethereum network usage is increasing sharply. Daily transactions rose to 1.87 million on Aug. 6, based on Etherscan data, nearing the all-time high of 1.96 million recorded in Jan. 2024. The uptick marks a reversal from the trend seen last year, when Ethereum lost ground to faster, cheaper chains like Solana (SOL).

Stablecoin activity, mainly Tether usdt0.02%Tether and USD Coin usdc0%USDC, is driving a large portion of the transaction growth amid rising optimism regarding the U.S. legislative environment. On-chain usage has increased and market confidence is being restored thanks to the recently passed GENIUS Act, which clarifies regulations for dollar-backed stablecoins.

In parallel, demand from institutional investors continues to grow. As reported by Nate Geraci, president of NovaDius Wealth, both ETH-treasury-holding companies and U.S. spot ETH ETFs have accumulated 1.6% of the total ETH supply each since early June, for a combined 3.2% share.

Strategic ETH Reserve data shows that 64 companies now hold 3.03 million ETH, valued at around $11.8B. U.S. spot ETH ETFs net assets, on the other hand, have reached $20.61 billion.

Ethereum technical analysis

Ethereum is showing neutral momentum. The price is hovering just under the 20-day simple moving average at $3,685. The relative strength index is at 58, neither overbought nor oversold. Most oscillators, including the Stochastic, commodity channel index, and MACD, point to a balanced setup.

Moving averages remain supportive. ETH is trading above its 10-day through 200-day exponential and simple moving averages. The awesome oscillator and momentum both exhibit some strength, but not enough to support a clear trend in either direction.

The price may move toward $3,920 if it breaks above $3,685. Support at $3,450 is still crucial on the downside. For now, ETH appears to be consolidating while underlying demand continues to grow.