ETH Slips Into High-Risk Territory Below $2.3K Despite Rising Network Activity
ETH is in a dangerous place right now because its price is dropping into a historically high-risk zone. This is happening even though critical network measurements indicate strong usage. As of this writing, ETH was trading at $2,264, down 2.8% over the past 24 hours.
The second-largest cryptocurrency by has been through a brutal trade-off, shedding almost 24% in the last week and 28% in the last month.
ETH’s price has dropped almost 54% from its top of $4,946 in August 2025. It is now moving toward the $2,200 level, where it has been for a while. Analysts say ETH is now in a high-risk zone later than dropping below $2,300. On-chain data shows a strange picture: even when the fundamentals look robust, the price action stays defensive.
On-Chain Growth Despite fragile Prices
Network activity has increased significantly over the last several sessions. In the last 24 hours, spot trade volume rose 21% to $47.25 billion, while rose 38% to $105 billion. Open interest in derivatives, on the other hand, fell by 1.18% to $27 billion, suggesting that some are less leveraged.
On-chain transfer numbers are a major warning indication. A from CryptoQuant contributor CryptoOnchain on February 4 says that ETH’s 14-day moving average transfer count has risen to about 1.17 million.
In the past, these kinds of spikes have happened during times of market stress, including in January 2018 and May 2021, right before large price drops. High transfers can be a sign of real network expansion, but abrupt increases often occur when many people are moving, distributing, or giving up.
The Technical Picture is Still Bearish
The way ETH’s chart is set up makes the cautious perspective even stronger. The asset remains stuck in a daily downtrend, with lower highs and lower lows, since it failed to break above $4,000 last year. Several attempts to bounce back have stopped at the 20-day moving average, and momentum is diminishing quick.
The mid-Bollinger Band has consistently rejected price action, and ETH is now below the lower. This usually means that the price will be more volatile on the downside. later than a short false recovery, the loss of the $3,000 level earlier in the cycle has left that area as overhead resistance.
The daily remains in the low 30s, suggesting little bullish divergence and limited long-term recovery prospects.
Technical signals say there isn’t much room for growth without a clear reversal. If tradeing pressure goes down and ETH stays above the $2,150–$2,200 support cluster, there could be a small bounce.
However, economists say that for any real change in attitude to occur, the market would need to close above $2,300 every day, which might push it to $2,700–$2,800. Without that change, upward moves are likely to stay small and be simple to turn down.
Outlook and the largeger Picture
The combination of high on-chain activity and falling price momentum has made people more cautious. The data doesn’t definitely show that the market has reached its peak. Still, it puts in an area where history shows a higher risk of a decline, especially when overall momentum is already fragile.
Traders are still cautious because most in the crypto markets are feeling risk-off. ETH is in a fragile position right now, so the next few sessions will be very significant in determining whether the network’s underlying strength leads to a price rebound or if more tradeing is on the way.
