Profit-Taking Caps Ethereum Rally as Network Activity Stalls

Ethereum's two-week rally has stalled due to profit-taking and muted network activity. The cryptocurrency is trading within a narrow range below key moving averages, with technical resistance capping immediate upside.

Despite recent price gains, Ethereum's network activity remains subdued, measured by daily active addresses, transaction counts, and gas usage. This divergence between price and network usage often indicates that the rally is driven more by speculative interest than organic demand.

The current lag suggests that the market may be overextended, and a correction could be on the horizon if on-chain metrics do not improve. Historically, sustained price increases are supported by growing network adoption.