Ethereum's network activity has surged, approaching record levels while transaction gas fees have fallen to near-zero, indicating a highly active yet cost-efficient network. Concurrently, the price of Ether (ETH) has retreated to the $3,200 mark after encountering resistance and failing to break through the $3,400 level.
Record Transactions Amidst Falling Gas Fees
Ethereum's transaction volume has climbed significantly, nearing all-time highs, while the cost of executing transactions has dropped to fractions of a cent. Reports and on-chain data indicate that Ethereum's daily transactions have approached approximately 2.5 million, with average gas fees falling below $0.01. This confluence of high throughput and extremely low costs is a notable development for the network.
Gas fee trackers have consistently shown base fees in gwei terms at near-zero levels. These readings are crucial for wallets to estimate transaction confirmation times and associated costs. One observed gas dashboard displayed a base fee close to 0.054 gwei, with "low," "average," and "high" fee options clustered around this minimal value, suggesting a lack of significant competition for block space at that particular time.
Third-party analyses have linked this surge in network usage to a sustained increase in transaction counts over several weeks. When viewed on a moving-average basis to account for daily fluctuations, Ethereum's 7-day moving average for daily transactions reached a new high earlier this month. This trend, based on data from sources like CryptoQuant, points to an acceleration of network interactions into the early part of 2026.
Further market updates have also highlighted new single-day transaction milestones. Data referencing figures from Etherscan, as reported by ChainCatcher, indicated that Ethereum processed approximately 2.88 million transactions in a single day. This figure serves as another indicator of expanded on-chain throughput, occurring while the typical fee environment remains notably subdued.
ETH Price Retreats Following $3,400 Resistance
In parallel, Ethereum's price has pulled back to the $3,200 region after failing to overcome resistance levels near $3,400. This observation comes from an analysis shared by trader Ted Pillows on X. The analyst noted that ETH was unable to break above the $3,400 zone, subsequently declining into the $3,200 support area, which aligns with a downside scenario previously outlined by the analyst.
Ethereum USDT Daily Chart. Source: Ted Pillows on X
The accompanying chart, which tracks the ETHUSDT pair on Binance over a one-day timeframe, depicted a price decline from the mid-$3,000s, followed by a sharp selloff before stabilizing around the $3,200 mark. The chart clearly highlighted a resistance band situated around $3,400, with a supply area extending above it. A support band was identified in the low $3,200s.
Ted Pillows suggested that Ethereum might attempt another upward movement towards $3,400 if the current support level at $3,200 holds firm. The chart also illustrated alternative price trajectories, including a potential bounce towards the mid-$3,300s and higher, or a more significant decline should the support level break, with lower price points marked below the prevailing range.