Ethereum's on-chain activity is reaching new highs with 15.19 million monthly active addresses, but the growing number of Derivative positions increases the risk of short-term volatility even before the price breaks out.
Notably, network usage data is surging while trader behavior is rapidly changing in line with market sentiment. The mismatch between network usage growth and leverage in the Derivative market could determine ETH's next direction.
- Ethereum reached a record 15.19 million monthly active addresses, showing significant growth month-on-month, six-month-on-year, and year-on-year.
- ETH funding rates turned positive on several exchanges; BitMEX rose 0.049% and Binance shifted from deep negative to near neutral.
- ETH price is currently stable around $2,000–$2,200, but a breakout depends on spot buying pressure amid rising leverage.
Ethereum network activity sets new record.
Ethereum recorded an all-time high of 15.19 million monthly active addresses, indicating a significant acceleration in network usage.
The number of monthly active addresses rose to 15.19 million, setting a new historical peak. The growth was described as large and steady: activity increased 38% in the most recent month, 71% in the past six months, and 114% year-on-year.
This data reflects users returning to interact with the Ethereum network through transfers, applications, and smart contracts. The quoted post shows that “many users are interacting again” with the network, according to the link: XEM X- Chia .
The key point is that the recovery is considered "notable," especially after the slump at the end of last year. In other words, on-chain usage is improving significantly, creating a positive fundamental foundation for ETH, although the price may not reflect this immediately.
ETH funding rates are becoming "crowded" in the Derivative market.
Funding rates increased positively on several exchanges, notably BitMEX which reached 0.049%, indicating that Longing are using more leverage and the risk of a correction will increase if Longing positions are liquidated.
Funding rates have turned positive on several exchanges, particularly BitMEX. ETH funding there has risen to 0.049%, the highest since October and well above the late October peak of around 0.03%.
Interpreted from a funding perspective: when funding is positive and increasing, Longing positions typically pay fees to Short positions, reflecting a higher demand for opening Longing or greater Longing . The original text also emphasizes "aggressive Longing betting" and widespread increased leverage.
Meanwhile, Binance is also noteworthy: ETH funding shifted from deep negative territory around -0.025% on February 5th to near neutral. This suggests that Short pressure is easing, while new Open Interest is being driven more by Longing positions.
However, aggressive funding doesn't necessarily mean prices will rise immediately. When Longing positions become "crowded," the market is prone to a downturn if leveraged positions are forced to close, creating a chain unwind effect.
ETH price is currently stable around $2,000–$2,200 but has not yet broken through.
Following the recent sell-off, ETH is trading sideways in the $2,000–$2,200 range; selling pressure has eased, but buying pressure is not yet strong enough to confirm a breakout.
ETH has found temporary support around the $2,000–$2,200 range after the most recent sell-off. The sideways movement within this range suggests selling pressure has eased, but buyers have yet to show the decisiveness to push the price above this resistance level.
The RSI recovered to the lows of the 30 mark, offering a short-term "ease of tension." Volume also cooled after a recent surge, suggesting that market urgency may be easing.
With increasing leverage in the Derivative market and prices remaining volatile, the next move could heavily depend on spot demand. If spot demand fails to keep pace, positive funding and rising open interest could lead to greater volatility in the event of a liquidation sweep.
In summary: on-chain is strengthening, but leverage could cause price volatility.
Ethereum is showing positive signs of network usage, but positive funding and increasing Longing positions could increase the risk of a pullback, especially as the price remains stuck in an accumulation zone.
Two key points to watch in parallel: (1) on-chain growth with a record 15.19 million monthly active addresses, and (2) the level of “crowding” in the Derivative market as BitMEX recorded a 0.049% funding while the price remained in a consolidation phase.
Given the current structure, short-term catalysts could come from spot cash flow or sudden changes in funding/open interest. Investors should monitor signs of sustained spot demand, along with price reactions around the $2,000–$2,200 range, to assess the probability of a breakout or a correction due to leverage unwinding.
Frequently Asked Questions
What does 15.19 million monthly active Ethereum addresses mean?
This is an all-time high, indicating a significant increase in the number of users and engagement with the Ethereum network. This is generally XEM as a positive sign for the health of the on-chain ecosystem, although the price may not reflect this immediately in the short term.
What does a funding rate of 0.049% on BitMEX indicate?
High and positive funding typically reflects the demand for opening more leveraged Longing positions. When Longing become “crowded,” the risk of short-term price declines increases if the market reverses and the Longing positions are forced to close.
Why hasn't ETH price broken through despite increased network activity?
Prices can be influenced by sentiment and position structure in the Derivative market. In a context of increased leverage, the next direction typically requires sufficiently strong spot buying to absorb supply and confirm a breakout above the $2,000–$2,200 consolidation zone.
