Ethereum’s Toughest Year Since 2018 Ends in 2026

• 2025 was brutal for ETH prices, with nine red months, but network usage hit record highs heading into 2026.
• Upgrades like Pectra and Fusaka lowered fees and boosted activity, setting the stage for stronger performance this year.
• Whales kept buying during dips, signaling long-term confidence despite weak price action and ETF outflows.

Ethereum has just closed one of its most difficult years since 2018. Prices struggled for most of the year, market confidence stayed weak, and month after month closed in the red.

But as 2026 begins, the picture looks very different. While price action in 2025 disappointed many investors, activity on the Ethereum network is now hitting record levels. This growing gap between weak prices and strong usage is shaping a fresh debate.

A Rough Year for ETH Holders

In 2025, Ethereum failed to live up to expectations. Nine out of twelve months ended with losses, making it one of the worst years for ETH. As the calendar flipped to 2026, Ethereum started sending a very different signal. According to network data, daily transactions reached a new all-time high at the end of December, averaging around 1.87 million per day. This is higher than the peak seen during the 2021 NFT boom.

Active addresses also surged. Nearly 729,000 addresses were active on a single day, the highest level since May 2021. At the same time, more than 270,000 new addresses were created in one day, the biggest jump since early 2018.

Upgrades Made Ethereum Faster

One major difference between 2025 and 2026 is the impact of upgrades. During 2025, Ethereum rolled out two key updates, Pectra and Fusaka. These changes helped the network handle more activity while keeping costs low. Fees dropped sharply, making Ethereum usable again for regular users. Transactions that once cost a lot now cost only cents. This made it easier for apps, stablecoins, games, and financial tools to grow quietly while prices stayed weak. More upgrades are coming in 2026, including Glamsterdam and Hegota, expected to further improve performance and make the network stronger over the long term.

WORST YEAR FOR $ETH SINCE 2018.

Nine months closed in the red.

And thats in a post-halving year!

While Ethereum‘s price is still below past highs, recent movement shows early signs of life. Even though ETH saw red in late 2025, on-chain data shows big wallets buying during dips rather than selling in panic. This suggests confidence is slowly returning, even if prices haven’t fully reacted yet.

Ethereum Price Action

Over the last 24 hours, Ethereum rose by around 2.4%, holding up better than many other major coins. Ethereum processed a record 2.2M transactions/day this week with average fees at $0.17, while 8.7M smart contracts were deployed in Q4 2025, the highest since 2021‘s bull run. High usage at low fees demonstrates Ethereum’s scaling progress via L2s.

From a technical perspective, ETH is trading at $3,044, testing the 50% Fibonacci retracement ($3,112) and 200-day MA ($3,593). The RSI 49.82 shows neutral momentum, but the MACD histogram turned positive (+11.28) for the first time since Dec 25. This means a daily close above $3,050 could trigger short-term bullish momentum toward $3,200. As of press time, ETH is trading at around

Despite $2B outflows from spot ETH ETFs in Nov-Dec 2025, on-chain data shows whales bought 116,893 ETH ($265M) during dips. Per Giottus CEO Vikram Subburaj, this reflects “supply absorption by strong balance sheets” rather than panic selling. This means Large holders (1k-10k ETH wallets) now control 30% of the supply. Their patience suggests conviction in post-Fusaka upgrade fundamentals scaling via PeerDAS and potential ETH/BTC ratio recovery.

Privacy and Long-Term Vision

Another major shift going into 2026 is Ethereums focus on privacy. Ethereum leaders have made it clear that future growth must protect users while staying compliant with regulations. Vitalik Buterin has stressed that Ethereum should remain a “world computer”, a network that works even if no single company controls it. Privacy tools, faster transaction finality, and lower barriers for users are now top priorities.

Despite the progress, Buterin also stated that technical milestones are not the end goal. He warned that Ethereum risks losing focus if it concentrates too heavily on short-term trends designed to boost activity or market attention. “Ethereum needs to do more to meet its own stated goals,” Buterin wrote, cautioning against efforts to “win the next meta.” He cited examples, including tokenized dollars, political meme coins, and activity engineered primarily to signal economic relevance rather than deliver lasting utility. Such narratives may generate temporary momentum but do little to advance Ethereums deeper purpose, he stated.

Final Thoughts

2025 may go down as one of Ethereum‘s most frustrating years since 2018. Prices disappointed, patience ran thin, and confidence was tested. But 2026 tells a different story. Usage is breaking records, upgrades are delivering results, and long-term builders are doubling down. If network growth continues and prices eventually catch up, Ethereum’s toughest year may end up being the foundation for its next chapter.