TLDR Ether has dropped 21% in Q1 2026, marking its third-worst first quarter performance in history despite strong network fundamentals. Tom Lee from Fundstrat TLDR Ether has dropped 21% in Q1 2026, marking its third-worst first quarter performance in history despite strong network fundamentals. Tom Lee from Fundstrat

Ether (ETH) Price: Network Activity Hits Record Highs While Token Falls 21% in Q1

3 min read

TLDR

  • Ether has dropped 21% in Q1 2026, marking its third-worst first quarter performance in history despite strong network fundamentals.
  • Tom Lee from Fundstrat attributes the price decline to lack of leverage in the market and capital flowing to precious metals like gold and silver.
  • Ethereum’s daily transactions hit an all-time high of 2.8 million on January 15, with active addresses reaching 1 million per day in 2026.
  • BitMine purchased 41,788 ETH last week and now holds 4.28 million ETH (3.55% of total supply), though faces $7 billion in unrealized losses.
  • ETH dropped to $2,200 on Monday after Kevin Warsh was named as Fed Chair candidate, with futures traders experiencing the second-largest single-day liquidation event on record.

Ether has fallen 21% in the first quarter of 2026, making it the third-worst Q1 performance in the cryptocurrency’s history. The price dropped from around $3,000 to a low of $2,200 on Monday before showing signs of recovery.

Ethereum (ETH) PriceEthereum (ETH) Price

Tom Lee, head of research at Fundstrat, says the decline doesn’t match what’s happening on the Ethereum network. Daily transactions reached an all-time high of 2.8 million on January 15, according to Glassnode data. Active addresses also peaked at around 1 million per day in 2026.

Two main reasons are keeping Ether’s price down, according to Lee. First, leverage hasn’t returned to the crypto market since the October 10 crash. Second, rising precious metal prices have pulled investment away from crypto as traders moved capital into gold and silver.

BitMine Continues Buying Despite Losses

BitMine, Lee’s Ethereum treasury firm, bought another 41,788 ETH last week. The company now holds 4.28 million ETH, which equals 3.55% of the total supply. BitMine has staked approximately 2.87 million ETH and is working toward a goal of holding 5% of all Ether.

The biggest price drop happened in the past week alone. ETH fell more than 25% after President Donald Trump named Kevin Warsh as his choice for Federal Reserve Chairman to replace Jerome Powell when his term ends in May.

Trading Volume Reaches Extreme Levels

Trading volumes spiked to $55 billion, equal to 20% of Ether’s circulating market cap. These numbers are typically seen in low-cap altcoins and meme coins, not major cryptocurrencies like ETH.

The selloff triggered massive liquidations in the futures market. On January 30, Ethereum saw $1 billion in long positions liquidated in a single day. This was the second-highest daily liquidation on record, only beaten by the October 10 flash crash.

The Fear and Greed Index hit 15, marking “Extreme Fear” for the fourth time in the past 12 months. The index measures overall market sentiment.

undefinedSource: TradingView

ETH has bounced off a key support level at $2,200, the same price point from which it rallied to a new all-time high after June 2025. The Relative Strength Index (RSI) reached its lowest oversold reading since August 2024. When ETH hit similar oversold levels in August 2024 at $2,150, it later rallied to $4,000 within a few months.

The post Ether (ETH) Price: Network Activity Hits Record Highs While Token Falls 21% in Q1 appeared first on CoinCentral.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Victra Named 2025 Recipient of Verizon’s Best Build Compliance Award

Victra Named 2025 Recipient of Verizon’s Best Build Compliance Award

Verizon Recognizes Victra for Industry-Leading Excellence in Store Design and Brand Compliance. RALEIGH, N.C., Feb. 3, 2026 /PRNewswire/ — Verizon has named Victra
Share
AI Journal2026/02/03 20:49
Stablecoins could face yield compression after Fed’s rate cut

Stablecoins could face yield compression after Fed’s rate cut

The post Stablecoins could face yield compression after Fed’s rate cut appeared on BitcoinEthereumNews.com. The Federal Reserve reduced its policy rate by 25 basis points to 4.00%–4.25%, the first rate cut this year. The move, framed as a response to weakening labor data, signals the start of a cautious easing cycle. Projections show two more cuts possible before year-end, with further reductions likely in 2026. Inflation remains above target, but Chairman Jerome Powell emphasized risk management over immediate price control, prioritizing stability in employment conditions. Stablecoins will be quickly affected by this. Issuers like Tether and Circle have generated large profits by holding reserves in short-term Treasuries during the high-rate environment of the past two years. That income stream now begins to erode. DeFi protocols that offered tokenized Treasury exposure face the same squeeze, with returns set to fall further if the Fed continues cutting into next year. A multi-cut easing cycle could substantially reduce stablecoin profitability, forcing issuers and protocols to adapt. The decline in dollar yields also alters the balance between holding stablecoins passively and seeking higher returns in risk assets. Bitcoin benefits most from this reallocation. As nominal rates move lower and inflation remains sticky, real yields decline, making non-yielding assets more attractive. The weaker dollar and improving risk appetite amplify the effect, positioning Bitcoin as a relative winner of the Fed’s shift. The September cut is modest, but it could bring significant changes to the crypto market. Stablecoin models built on Treasury income face structural headwinds after the rate cut, while Bitcoin and other high-beta assets stand to gain from falling real yields and increased liquidity. The Fed has opened an easing cycle, and crypto’s internal capital flows will move with it. The post Stablecoins could face yield compression after Fed’s rate cut appeared first on CryptoSlate. Source: https://cryptoslate.com/insights/stablecoins-could-face-yield-compression-after-feds-rate-cut/
Share
BitcoinEthereumNews2025/09/18 19:31
Wormhole Jumps 11% on Revised Tokenomics and Reserve Initiative

Wormhole Jumps 11% on Revised Tokenomics and Reserve Initiative

The post Wormhole Jumps 11% on Revised Tokenomics and Reserve Initiative appeared on BitcoinEthereumNews.com. Cross-chain bridge Wormhole plans to launch a reserve funded by both on-chain and off-chain revenues. Wormhole, a cross-chain bridge connecting over 40 blockchain networks, unveiled a tokenomics overhaul on Wednesday, hinting at updated staking incentives, a strategic reserve for the W token, and a smoother unlock schedule. The price of W jumped 11% on the news to $0.096, though the token is still down 92% since its debut in April 2024. W Chart In a blog post, Wormhole said it’s planning to set up a “Wormhole Reserve” that will accumulate on-chain and off-chain revenues “to support the growth of the Wormhole ecosystem.” The protocol also said it plans to target a 4% base yield for governance stakers, replacing the current variable APY system, noting that “yield will come from a combination of the existing token supply and protocol revenues.” It’s unclear whether Wormhole will draw from the reserve to fund this target. Wormhole did not immediately respond to The Defiant’s request for comment. Wormhole emphasized that the maximum supply of 10 billion W tokens will remain the same, while large annual token unlocks will be replaced by a bi-weekly distribution beginning Oct. 3 to eliminate “moments of concentrated market pressure.” Data from CoinGecko shows there are over 4.7 billion W tokens in circulation, meaning that more than half the supply is yet to be unlocked, with portions of that supply to be released over the next 4.5 years. Source: https://thedefiant.io/news/defi/wormhole-jumps-11-on-revised-tokenomics-and-reserve-initiative
Share
BitcoinEthereumNews2025/09/18 01:31