🚀 Ethereum Charges Toward ATH as Network Explodes with 1.87M Daily Transactions

Ethereum's blockchain just hit hyperdrive—processing a record-shattering 1.87 million transactions in 24 hours as ETH price flirts with all-time highs. The network's activity surge coincides with a bullish market rally that's leaving traditional finance scrambling to justify their 2% annual yields.

Gas fees or glory?

While the transaction spike validates Ethereum's dominance, traders now face the classic dilemma: pay up for network priority or risk getting front-run by institutional bots. The irony? Wall Street still calls crypto 'inefficient' while paying teams of analysts to decode blockchain data.

The scaling paradox

Layer 2 solutions are eating base layer's lunch—processing over 60% of these transactions off-chain. Yet every scaling 'solution' seems to create new fragmentation. Meanwhile, ETH maximalists cheer the activity surge like it's 2021, conveniently ignoring that most transactions are now altcoin gambles and NFT wash trading.

As Ethereum's economy overheats, one truth emerges: the network has become too big to fail—and too expensive to use. The ultimate bullish paradox.

Ethereum Record Network Activity Meets Price Resistance

Data from CryptoQuant contributor CryptoOnchain shows that daily ethereum transactions have reached a record high of approximately 1.875 million. This surge in activity signals elevated demand for block space and heightened engagement across the network.

The confluence of strong on-chain metrics with a critical price level creates a technical and fundamental intersection that could determine Ethereum’s next move. According to CryptoOnchain, Ethereum’s current position represents a decision point.

A breakout above $4,750, accompanied by sustained transaction volume, could propel ETH into a price discovery phase, potentially surpassing its historical peak. Conversely, if sellers defend this level, a consolidation phase or a retracement toward the $3,950 support area is possible.

The analyst also cautioned that while peak network activity often accompanies bullish price action, it can also signal a near-term overheating of the market. In such cases, even with strong fundamentals, prices may pause or retrace as participants adjust their positions.

This dynamic is particularly relevant as Ethereum tests a historically significant resistance zone while network usage is at an all-time high.

Exchange Outflows Suggest Continued Buying Pressure

In a separate analysis, another CryptoQuant analyst, Burak Kesmeci, examined Ethereum’s net FLOW data across all exchanges. Using the 30-day simple moving average (SMA30), Kesmeci found that ETH net flows remain in strongly negative territory, at around –40,000 ETH as of August 12, 2025.

This represents an average daily outflow of 40,000 ETH over the past month, a trend that has coincided with the asset’s recent price increase.

Negative net flows indicate that more ETH is leaving exchanges than entering, often interpreted as a sign of reduced immediate selling pressure and increased holding behavior.

Kesmeci linked the recent outflow strength to spot ETH ETF activity, suggesting that institutional demand has been a major factor supporting prices.

He noted that as long as the SMA30 stays in negative territory, the upward trend is likely to continue. A shift into positive territory, however, could signal a change in market sentiment and potentially weaken buying momentum.

With both record transaction counts and sustained exchange outflows, Ethereum is facing a market environment shaped by strong usage fundamentals and significant institutional interest.

Whether these factors will be enough to propel ETH through its long-standing price ceiling will likely be determined in the coming sessions, as traders watch for either a confirmed breakout or signs of rejection at the $4,750 level.

Featured image created with DALL-E, Chart from TradingView