CryptoQuant: Ethereum Faces "Adoption Paradox," ETH May Drop to $1,500 in Q3 and Q4 This Year

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Deep Tide TechFlow News, March 13 — According to The Block, CryptoQuant analysts say Ethereum is facing an “adoption paradox” — network activity continues to hit record highs, but ETH prices are falling sharply, showing a clear divergence. CryptoQuant Research Director Julio Moreno stated that if the bear market persists, ETH could drop to around $1,500 by late Q3 to early Q4 this year.

CryptoQuant data shows that Ethereum’s daily active addresses surpassed the 2021 bull market peak last month, and internal smart contract calls also reached record highs. The expansion of decentralized finance, stablecoins, and layer-two networks are the main driving factors. However, ETH prices have already fallen more than 50% from the cycle’s high, and the historically positive correlation between network activity and price has clearly broken down. Moreno said that for ETH to exit the bear market, two conditions must be met: net capital inflow turning positive, and exchange inflow decreasing.

ETH3.32%
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