Ethereum has fallen below $2,600 after failing to hold its recovery toward $2,700, yet on-chain activity and social attention remain elevated. The divergence between weakening price and strong network engagement, set against a tougher macro backdrop and persistent ETF outflows, leaves traders watching whether buyers return to defend support.
The network beneath the sell-off tells a different story. Active addresses and social attention around ETH are holding firm even as sellers press the short-term structure, creating a sharp split between price momentum and on-chain interest.
Network Activity Holds Up as Price Weakens
Daily active addresses on Ethereum are near 520,000, up sharply from the previous reading, even as the asset moves below $2,600. Network participation has not weakened alongside the price decline, which suggests meaningful user activity persists despite the softer short-term momentum.
Social Dominance, which measures ETH's share of crypto-related social discussions, is also keeping the asset firmly on the market's radar. Rising attention while price is under pressure can point to traders watching the sell-off for a potential reversal. If this activity persists, the pullback could prove less damaging to underlying demand than the price action alone suggests.
Macro Headwinds and ETF Outflows Add Pressure
Ethereum's weakness is unfolding against a difficult macro backdrop. Brent crude has climbed above $100, recently trading near $102. The U.S. 10-year Treasury yield has moved above 5.3% and the Dollar Index sits around 102, and higher oil prices are reviving inflation concerns while elevated yields and a stronger dollar create a tougher environment for risk assets.
Markets have reduced expectations for an October rate hike, but elevated energy prices could complicate the inflation outlook, leaving crypto markets sensitive to incoming data. Institutional flows add further pressure: U.S. spot Ethereum ETFs recorded $201.9 million in net outflows on October 6, the sixth consecutive session of withdrawals. The streak has removed roughly $407.8 million from ETH funds since September 29.
$2,600 Marks the Immediate Battle Line
ETH is testing the $2,600 area after falling nearly 4% in the latest session. Immediate support sits around $2,450–$2,500, with the next downside zone near $2,400. On the upside, Ethereum needs to recover the $2,640–$2,700 region before the larger $2,800–$2,900 resistance zone becomes relevant again.
If buyers defend the current support structure, the resilient on-chain data could provide the foundation for a relief move. A decisive breakdown through the lower support zone would instead suggest that strong network activity is not yet translating into sufficient spot demand.
Source: Coinpedia Fintech News
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