Daily Active Addresses Crater on Ethereum (ETH): Price Slide Is Following Exactly On Cue

Ethereum’s daily active address count continues to trend lower as it extended a multi-week decline in user ￰0￱ decrease implies fewer users are interacting with smart contracts, dApps, and transfers, which indicates lighter on-chain engagement across the ￰1￱ number of unique addresses sending or receiving ETH daily has fallen dramatically, from roughly 480,000 in mid-August to nearly 363,000 by October ￰2￱ 24% contraction isn’t just a superficial on-chain ￰3￱ Network Is Quieting Down Active address trends have historically been deeply intertwined with price direction and have served as a proxy for network demand, user presence, and capital ￰4￱ this time, price is tracking that deterioration, which is evidenced in ETH’s drop from the upper $4,800 level toward the $3,900 region during the exact same ￰5￱ 7-day moving average of active addresses supports this downtrend even more convincingly by stripping out daily noise and offering a cleaner structural ￰6￱ too has retraced, from the 480,000 area to roughly 370,000, highlighting that the drop is steady rather than ￰7￱ such, the Ethereum network is seeing fewer transactions, less contract interaction, and weaker dApp usage, especially at a moment when the asset is under pressure ￰8￱ a noticeable rebound in address activity, CryptoQuant’s data suggests that the bears hold the advantage.

“Unless we see a strong and sustained rebound in active addresses, any potential price rally may remain ￰9￱ should treat this ongoing decline in fundamental network activity as a critical signal in their analysis.” Fail Here and $3,500 Becomes Reality At the time of writing, Ethereum is trading at around $3,714, extending its recent slide as bearish sentiment continues to pressure the ￰10￱ the past month, the leading altcoin has declined by approximately 17.4%. The weakness has intensified even further in the near term, with a fresh 5% drop in the past 24 hours ￰11￱ the latest dump, crypto analyst Ted Pillows said that ETH has now reached a critical support ￰12￱ such, if buyers defend this support strongly, there is room for a rebound toward the $4,000 region.

However, if price breaks convincingly below this zone, Pillows expects a sharper continuation lower, which could potentially send Ethereum toward and even beneath the $3,500 area.