Ethereum Price Surge Fueled by Increasing Demand, But Market Regime Remains Bearish

Ethereum's recent price increase has raised questions about the sustainability of its trend. According to data from CryptoQuant, the altcoin's net taker buy volume has been steadily increasing over the past two weeks.

However, this rise in demand has not yet translated into a significant price surge. The price of Ethereum remains just above $2.2k, but the underlying indicators suggest that there may be more to the market than meets the eye.

CryptoQuant's Chaikin Volume Divergence (CVD) metric shows that net taker buy volume is higher than usual, indicating aggressive buying activity. But despite this, the price has not moved commensurately, suggesting that something else may be at play.

A closer examination of Ethereum's on-chain activity reveals a similar pattern to one seen in 2025, where rising activity preceded a significant price drop. This raises concerns about the sustainability of the current trend and whether it may ultimately lead to further declines.