CryptoQuant says ETH could fall to $1,500 amid Ethereum’s ‘adoption paradox’
CryptoQuant suggests ETH might drop to $1,500 due to an 'adoption paradox' where network activity surges while price lags.Summary
Onchain analytics firm CryptoQuant warns that Ethereum (ETH) could fall to approximately $1,500 by late Q3 or early Q4 if the bear market persists, citing an 'adoption paradox.' This paradox is characterized by Ethereum's daily active addresses and smart contract calls reaching all-time highs, surpassing 2021 levels, while ETH's price has dropped over 50% from cycle peaks—a reversal of historical trends. CryptoQuant notes that the historical positive correlation between smart contract activity and ETH price has deteriorated. Consequently, the firm believes exchange inflows provide a clearer signal, noting that elevated ETH exchange inflows relative to Bitcoin suggest stronger selling pressure. Furthermore, the one-year change in Ethereum's realized capitalization has turned negative, indicating capital is exiting the network. According to CryptoQuant's head of research, Julio Moreno, positive capital inflows and lower exchange inflows are necessary for ETH to exit the bear market.
(Source：The Block)