TL;DR

• Ethereum active addresses hit 674K, signaling growing network adoption and renewed on-chain participation.
• EIP-1559 continues burning ETH, keeping net emissions near zero and tightening overall token supply.
• Support zones at $3,200–$3,350 and $2,950–$3,050 could spark a rebound toward $4,000.

Rising Network Usage and On-Chain Growth

Ethereum (ETH) is recording higher on-chain activity, with daily transactions reaching the highest level in over a year. According to analyst Cas Abb, the number of active and new wallet addresses is rising, as more people are joining the network. This is an indication of actual adoption and increasing network demand, and not speculation in the short-term market.

#Ethereum is showing signs of quiet but strong growth onchain.

Daily transactions have climbed to their highest levels in more than a year, showing that usage is not just steady but accelerating.

More users are engaging, with active addresses and new addresses both trending… pic.twitter.com/YXPdj7RMtM

— Cas Abbé (@cas_abbe) August 3, 2025

Merlijn The Trader reported that active addresses have climbed above 674,000, the highest since the previous cycle peak. In 2021, a similar increase in wallet activity came before a strong market rally. The current rise in activity shows that Ethereum’s network participation is expanding again.

Supply Pressure Eases as ETH Burns Continue

Ethereum’s supply is tightening as the EIP-1559 mechanism continues to burn ETH. As Cas Abb observed, net emissions remain close to zero even when the market swings. This situation with limited supply and increasing consumption gives a foundation for a stable market.

Institutional interest also remains present. Data from SoSoValue shows that Ethereum ETFs saw $154.3 million in inflows last week. Investors continue to allocate to ETH, taking advantage of price dips during this correction phase.

Price Action and Key Technical Levels

Ethereum was trading at $3,550 at press time, with a 24-hour volume of approximately $20 billion. The asset has increased by 3% in the last 24 hours but has declined by 9% weekly.

Michaël van de Poppe identified an immediate bounce zone of between $3,200-$3,350, and a critical long-term entry zone of between $2,950-$3,050 in case the market continues downward.

I wouldn’t be surprised if $ETH is going to go to the lows one more time and then reverses back up.

Ideally, it’s down around 15% from the high and that’s not a bad spot to start accumulating your positions.

The next stop, if it goes back up, is going to be north of $4K. pic.twitter.com/cxw0Fz5HaX

— Michaël van de Poppe (@CryptoMichNL) August 3, 2025

Trading volume increased during the decline, often a sign of strong market reactions. The Relative Strength Index (RSI) sits in a neutral-to-weak area, showing that the market has cooled but is not oversold. Analyst Ali Martinez also highlighted $2,924 and $2,750 as key support levels to monitor.

Market Outlook and Seasonal Context

Van de Poppe’s outlook suggests Ethereum could recover toward $4,000 if current support zones hold. Historical data from CoinGlass shows that August has been mixed for ETH, with double-digit losses in 2023 and 2024, but a 36% gain in 2021 during a bull phase.

There has also been an interest in social media, as Eric Trump shared on X, asking followers to consider buying the dip. Traders are now monitoring on-chain data, fluctuations in supply, and ceiling levels to determine the next direction in price.

Artificial intelligence platform Grok has tallied 237 distinct bearish predictions by economist Peter Schiff forecasting Bitcoin’s crash, demise, or worthlessness since 2011.

Over that same period, the OG cryptocurrency’s price has skyrocketed by an astonishing 1,000,000%, turning his relentless warnings into a chronicle of spectacularly mistimed pessimism.

A Relentless Campaign Against BTC

Grok’s findings, shared on X by Bitcoin Magazine reporter Vivek Sen, stemmed from an “exhaustive review” of Schiff’s public statements, tweets, interviews, and articles stretching back to Bitcoin’s infancy.

The AI tallied 237 instances where the gold bug declared BTC a bubble, predicted its imminent crash, or asserted it would become worthless.

This pattern of bearishness has remained remarkably consistent. For example, on July 11, Schiff urged investors to sell Bitcoin when it was at $118,000 and buy silver, claiming the cryptocurrency was overvalued and speculative. Days later, it hit a new all-time high of more than $123,000.

Additionally, he dismissed Bitcoin as “just a meme coin” earlier in the year, despite its price surpassing $100,000 for the first time. And then in April, during a lengthy X Spaces session, he called BTC a “fraud” and predicted bankruptcy for Michael Saylor’s Strategy. The Bitcoin treasury company has since reported record revenues following a bumper quarter for BTC prices, with its books showing a net income of $10 billion in Q2 2025.

Schiff’s critiques often focus on Bitcoin’s volatility, its correlation with tech stocks, and its perceived failure to act as “digital gold” during market stress, a point he reiterated forcefully on August 1, when BTC dipped 3% alongside tech stocks while gold rose.

The social media reaction was swift and sardonic, with one User quipping, “Can someone check on him pls?” Grok itself dryly noted Schiff “appears to be in good health, continuing his critiques undeterred,” adding that “persistence is key in markets.”

Schiff’s Stance vs. Bitcoin’s Trajectory

Despite Schiff’s unwavering skepticism, Bitcoin currently boasts a market value of approximately $2.27 trillion and ranks among the world’s top assets.

Still, it experienced a dip this week, falling from around $119,000 to a low of $112,269, per CoinGecko. Market watchers attributed the slump to factors like Federal Reserve policy, geopolitical tensions, and significant spot ETF outflows running to $812 million on August 2 alone.

At the time of writing, it was trading around $114,238, showing a slight 0.6% 24-hour gain but a 4.2% weekly loss. However, zooming out reveals the stark contrast with Schiff’s narrative: the asset is up 5.6% in the last 30 days, and 88.7% across the past 12 months, not forgetting the monumental 1,000,000% jump since 2011 that Grok highlighted.

Schiff’s latest salvos include calling a potential U.S. Bitcoin reserve a “taxpayer boondoggle” and labeling Michael Saylor a “con man.” While he maintains Bitcoin is fueled by “speculative mania,” causing a “huge misallocation of capital,” the market capitalization and relentless adoption by institutions and governments exploring reserves tell a different story.

Ethereum has pulled back slightly after tagging the $4,000 resistance level, which capped the recent explosive rally. While the short-term correction shook out late long positions, on-chain data still leans bullish. As we move into August, price action, RSI levels, and supply metrics hint at the next major move.

Technical Analysis

By ShayanMarkets

The Daily Chart

ETH’s daily chart remains structurally bullish despite the recent retracement. After the breakout above the $2,800 resistance level, the price surged past the $3,500 resistance zone, eventually stalling near $4,000. This area aligns with prior swing highs from late 2024 and is acting as strong resistance for now.

The asset has now retraced back toward the broken resistance at $3,500, which is being retested as support. The RSI has also cooled from overbought levels and is currently hovering near 56, allowing room for another move up if buyers step in.

Moreover, the 100-day moving average is accelerating above the 200-day moving average, confirming a bullish golden cross structure. As a result, momentum remains in favor of the bulls as long as ETH stays above the $3,500 range. If this zone breaks, the next support lies at $2,800 and then $2,500.

On the upside, reclaiming $3,700 would open the door for another test of the $4,100 highs. A confirmed breakout above that level could trigger a move toward $4,400–$4,500.

The 4-Hour Chart

The 4-hour chart shows ETH breaking down from a rising wedge formation, a pattern often associated with exhaustion after a prolonged rally. After multiple failed attempts to break above $4,000, ETH rolled over and fell toward $3,350 before finding short-term support.

The move coincided with a bearish divergence on RSI, signaling weakening momentum before the drop. Since then, the price has formed a local base around $3,350–$3,500, with the buyers attempting to regain control.

For now, ETH is stuck in a short-term range between $3,500 and $3,750. A clean break above this range could trigger another move toward the $4,000 region. However, if the buyers fail to hold the $3,500 area, we might see further downside into the $3,300 or even the $3,100 zone. This is a key area where both the sellers and the buyers are battling for short-term momentum.

Onchain Analysis

Exchange Supply Ratio

The Ethereum Exchange Supply Ratio continues to trend lower, hitting a fresh multi-year low at 0.13. This metric measures the proportion of ETH held on exchanges relative to the total supply.

A falling ratio indicates that less ETH is being held on centralized exchanges, suggesting that holders are moving their coins into cold wallets, staking contracts, or custody solutions. It’s often interpreted as a bullish signal since it reduces the immediate supply available to sell on the open market.

This trend has been in place for the past few years and aligns with Ethereum’s broader shift toward becoming a yield-bearing asset post-Merge. Despite recent price volatility, investors appear to be sticking to a long-term accumulation strategy.

With less ETH available on exchanges, even moderate demand could trigger sharp price movements to the upside. Unless this ratio reverses with a sudden inflow of supply back onto exchanges or a futures liquidation cascade occurs, the overall market structure remains bullish from a supply-side perspective.