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Ethereum price is trading near a critical resistance band even as the network posts record base-layer activity. Ethereum processed 200.4 million Layer 1 transactions in the first quarter of 2026, its strongest quarter on record. However, ETH price is still over 50% off its August 2025 high of around $5,000, with traders weighing between healthy usage and poor price performance follow-through.
Ethereum Price Struggles Below a Major Resistance Zone
Ethereum price is trading near $2,400 after another failed attempt to reclaim higher resistance. Ted Pillows said ETH was rejected again from the $2,450 zone. His chart showed that this area remains the first major ceiling that bulls must overcome.
The upside momentum is limited as long as Ethereum price does not exceed that band. Ted Pillows added that ETF buying is still too weak to support a real breakout. In his view, failure to reclaim that zone could lead to another correction below $2,200.
The chart outlines two clear paths. A stronger move above $2,400 could open the way toward $2,624 and then the $2,700 region. However, if ETH price loses $2,200, support weakens and downside levels near $1,880 and $1,740 come back into focus.
Ethereum price has recovered from its February lows, but it has not yet broken the broader resistance structure. The market is yet to establish whether the rebound is strong enough to sustain itself.
Record Transactions Show Ethereum Usage is Still Expanding
Meanwhile, Ethereum network itself is showing strong growth. Artemis data
indicated that in Q1 2026 Ethereum made 200.4 million transactions on its base-layer. It was the first quarter that Ethereum reached 200 million transactions.
The move completes a clear U-shaped recovery in activity. Quarterly transactions had bottomed near 90 million in 2023. Then most of 2024 was busy with a growth of between 100 million and 120 million then the growth speed went up in 2025.
As of Q4 2025, Ethereum had a quarterly transaction volume of 145 million. Q1 2026 increased further by 43% afterwards. This indicates that the usage has significantly bounced back despite Ethereum price not showing the same trend.
The significance of that gap is that traders commonly anticipate price to adhere to more powerful network fundamentals. Rather, ETH price is still significantly lower than its previous peak. This divergence has pushed some market watchers to argue that fundamentals may be improving ahead of price rather than after it.
Layer 2s and Stablecoins are Driving Most of the Boom
Notably, much of this growth in transactions is due to Layer 2 activity and stablecoin settlement. Base and Arbitrum are still the two biggest Layer 2 networks. The users communicate there at reduced charges and the operation subsequently reconciles on the base layer of Ethereum.
Stablecoins are also a major driver. According to Token Terminal data, Ethereum currently hosts a record 180 billion of stablecoin supply. That accounts for about 60% of the global stablecoin market, which underlines Ethereum’s central role in digital dollar settlement.
Combined, these trends shift more activity to Layer 1 via bridging and settlement. Even when users do not touch the base layer directly, Ethereum still records the final transactions. That is why the number of transactions can continue to increase even in a less favorable ETH price environment.
However, the market is also questioning how much of that growth flows back to holders. Following the Dencun upgrade, Ethereum is receiving a lower amount per transaction, as the Layer 2 data prices dropped significantly. Consequently, increased utilization does not necessarily translate into increased fees, increased burn, and direct ETH price support.
