The recent decline in Ethereum's price has raised concerns as it retraced over 5.6% to $2,275, failing to surpass the $2,400 resistance level. This drop may signal a potential further decline below $2,000 based on various market indicators.
Network activity has been waning, with weekly average transactions down by 10% to 4.79 million, alongside an 8% decrease in active addresses, now totaling 2.5 million. The total value locked in Ethereum’s DeFi protocols has also decreased to $124.7 billion, which is the lowest since May 2025.
Moreover, a sharp increase in Ethereum’s unstaking queue was observed, rising by approximately 72,000% to 530,985 ETH as of May 2. This surge in withdrawals reflects heightened caution among investors following significant losses in the DeFi space, which amounted to $625 million due to multiple hacks in April 2026.