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Ethereum demonstrates resilience despite weak market conditions in the first quarter
Ethereum recorded its first mixed quarter in 2026 as declines in cryptocurrency prices affected many key decentralized finance indicators, while network adoption and tokenized asset growth continued to strengthen. Data from Token Terminal shows that lending activity, decentralized exchange trading volume, and fee generation decreased during the quarter, reflecting broader market weakness. However, Ethereum maintained its dominance across major blockchain sectors.
The total value locked (TVL) on Ethereum decreased by 11% quarter-over-quarter to $316.2 billion, as asset price declines reduced the value of capital deployed across the ecosystem. Even with the pullback, Ethereum remains the largest smart contract network by a significant margin, with locked value exceeding that of its closest competitors combined.
Decentralized finance activity declined during the quarter. The average active loans were $21.8 billion, down 16.6% from the previous quarter, largely due to decreased activity on the Aave platform. Trading volume on decentralized exchanges also fell to $134.5 billion as traders reduced their risk exposure amid uncertain market conditions. Despite the slowdown, Ethereum continues to lead the lending sector and remains one of the most actively traded chains in decentralized trading.
One of the strongest growth areas came from real-world asset tokens. The value of tokenized assets on Ethereum reached $203.4 billion, an increase of nearly 43% compared to last year. Stablecoins remain the largest sector, while tokenized funds and commodities showed steady growth. Gold tokenized products were among the top performers, helping drive a 60% increase in the quarter for tokenized commodities.
Network activity painted a more robust picture. Monthly active addresses rose to a record 13.2 million, while transaction volume jumped to over 200 million transactions during the quarter. The processing speed also reached a new high of 25.78 transactions per second after the Fusaka upgrade, highlighting improved scalability and increasing user adoption.
Meanwhile, transaction fees declined sharply as network efficiency improvements lowered costs for users. Although the decrease in fees reduced protocol revenue in the short term, it also encouraged increased usage across the ecosystem and supported sustainable network growth.
Despite Ethereum’s fully diluted valuation decreasing alongside the broader market correction, staking participation continued to rise. The increasing share of staked ETH indicates that investors remain committed to the network despite short-term price volatility.
Daily Technical Analysis for ETHUSDT
Ethereum remains in a downtrend on the daily chart despite recovering from recent lows near $1500. The breakdown below the key support zone at $2100 earlier this year has decisively shifted the market structure in favor of sellers.
The recent rebound improved short-term sentiment, but price action still appears as a recovery bounce within a broader downtrend. Buyers need to reclaim key resistance levels for the trend reversal to be considered sustainable.
The first resistance zone lies between $1800 and $1900. A successful breakout above this zone could open the door toward the resistance area between $2110 and $2220. The next upside target is the main supply zone between $2388 and $2465, where previous selling pressure increased.
On the downside, immediate support remains near $1500, followed by stronger demand around $1385. A break below these levels could trigger another wave of selling and extend the broader correction.
Momentum indicators are recovering from oversold conditions, suggesting buyers are attempting to regain control. However, the overall market structure remains bearish until Ethereum can reclaim higher resistance zones and form a series of higher highs and higher lows.
Outlook
Ethereum’s fundamentals continue to improve through increased adoption, growth in tokenized activity, and expanded network usage. However, technical conditions remain fragile. As long as ETH trades below the resistance zone between $1900 and $2100, upward moves are likely to face selling pressure. Sustained movement above $2100 would reinforce recovery expectations, while a drop below $1500 could expose the market to further declines.