According to The Block, CryptoQuant analysis reveals that Ethereum is facing an "adoption paradox"—network activity has reached record highs, yet the price of ETH has declined significantly, creating a clear divergence. Julio Moreno, Head of Research at CryptoQuant, stated that if the bear market persists, ETH’s price could fall to approximately $1,500 by the end of Q3 or 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 call volumes also hit all-time highs, driven primarily by growth in decentralized finance, stablecoins, and layer-2 networks. However, ETH’s price has dropped more than 50% from its peak in this cycle, and the historical correlation between network activity and price has clearly broken down. Julio Moreno noted that for ETH to exit the bear market, two conditions must be met: net capital inflows must turn positive, and exchange inflows must decline.
CryptoQuant: Ethereum Faces 'Adoption Paradox'; ETH May Fall to $1,500 in Q3–Q4 2026
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Summary
CryptoQuant warns that ETH’s price could drop to $1,500 by late 2026 due to an "adoption paradox." Network activity—including daily active addresses and smart contract calls—has reached record highs, yet ETH’s price has fallen more than 50% from its peak. Research Director Julio Moreno stated that positive net capital inflows and reduced exchange inflows are necessary to end the bear market. If Ethereum fails to recover, altcoins to watch may attract increased attention.
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