Ethereum ($ETH) is currently encountering a crucial scenario with a significant drop in transfer counts. The notable dip in Ethereum’s ($ETH) transaction count occurs despite the resilience shown by its price. As per the data from CryptoOnchain, a prominent crypto analyst, amid the decreasing number of transfers, the price of $ETH is retesting its local peaks. Hence, the increasing distance between Ethereum’s network activity and price indicates a bearish divergence.

A critical warning sign for #Ethereum? ⚠️

We’re seeing a major bearish divergence.

📈 Price: Remained high, retesting peaks.

📉 Network Activity: 7-day avg Transfer Count has dropped significantly from an 838k peak (Aug 8) to just 680k now.

This disconnect suggests the high… pic.twitter.com/x8Bgl60B7i

— CryptoOnchain (@CryptoOnchain) October 5, 2025

$ETH Transaction Count Plunges Amid Strong Price Activity

Based on the on-chain data, the cumulative transfer count of Ethereum ($ETH) has dropped to a significant extent. This reportedly highlights a clear downward streak from August’s start through mid-September. Particularly, the 7-day average transaction count of Ethereum has slumped from 838,000 on the 8th of August to only 680,000 by September’s end. Nonetheless, this development, irrespective of the strong price performance, signifies a widening bearish divergence.

In this respect, the transaction count plunge is taking place at a time when $ETH’s price is hovering within the $3,000-$4,800 range. Additionally, the 7-day simple moving average (SMA7) has confirmed this trend between August’s start and mid-September. Along with that, the leading altcoin is also retesting its local price highs, producing a visual divergence between actual usage and speculative valuation.

While $ETH prices started showing recovery signs during late September, the deficient network activity triggered apprehensions regarding stability. Keeping this in view, the market onlookers categorize such divergences as an onset of price reversals, specifically while speculative momentum outperforms fundamental engagement. Thus, the current scenario is complicated, and the outcomes will be clarified in the near term.

Price Performance Lacks Sufficient On-Chain Support

According to CryptoOnchain, the ongoing divergence between Ethereum’s plunging network activity and resilient price performance raises caution. Therefore, the heightened price may not get sufficient support from the underlying network activity. However, whether the respective bearish outlook leads to a wider correction is yet to be witnessed, while the on-chain statistics still suggest caution.