Ethereum may continue to decline due to the "adoption paradox"—the growing gap between network activity and the asset's price dynamics, analysts at CryptoQuant noted in a comment to The Block.

If the bearish trend persists, Ethereum's price could fall to $1500, according to researcher Julio Moreno. Without significant market shifts, the asset could reach this level by the end of Q3 or early Q4.

"Adoption Paradox"

Experts highlighted that last month, the number of active addresses on the network hit an all-time high, surpassing even the figures from the bullish market of 2021.

However, the price of ETH has dropped over 50% from its peak last autumn. This situation contradicts previous cycles, where increased network activity was accompanied by rising prices.

Ethereum is currently trading at levels corresponding to local lows from June 2025. Daily ETH/USDT chart on Binance. Source: TradingView.

This divergence affects not only the user base. CryptoQuant analysts observed a sharp increase in smart contract activity and automated protocols.

"The historical link between smart contract activity and ETH price has been disrupted […]. In previous cycles, prices showed a clear positive correlation with on-chain metrics: an increase in transactions coincided with a rise in asset value," researchers emphasized.

Ethereum at $2000: A Test of Strength

Analyst Ted Pillows noted that Ethereum's price remains above the psychological level of $2000, despite macroeconomic uncertainty.

$ETH is still holding above the $2,000 level.

The macro uncertainty is still there, but Ethereum's overall strength is good.

For a rally, ETH needs to reclaim the $2,150 level, and a 10%-15% quick rally could happen. pic.twitter.com/JmfoMv9lul

— Ted (@TedPillows) March 12, 2026

According to him, for a "quick rally of 10-15%", Ethereum needs to surpass the $2150 mark.

Some market observers have already noted a breakout from a descending resistance level:

$ETH is breaking out 🚀

Time to send it higher. pic.twitter.com/i09BoZfw8P

— Max Crypto (@MaxCrypto) March 13, 2026

Moreno believes that a capital influx into the ecosystem and reduced cryptocurrency inflows to exchanges should help exit the bearish phase. However, analyst Merlijn The Trader noted that centralized exchanges currently hold only 16 million ETH, a historic low.

BREAKING:

Ethereum exchange reserves just hit an all-time low.

Now only 16M $ETH is left on exchanges. Price is at $2,000.

Less supply on exchanges. More demand incoming.
This is what a bottom looks like.

Smart money is accumulating. Are you? pic.twitter.com/46zhEwPOjD

— Merlijn The Trader (@MerlijnTrader) March 13, 2026

"Less supply on exchanges. More incoming demand. This is what a market bottom looks like," the expert emphasized.

Recall that in February, investors withdrew 31.6 million ETH from centralized exchanges—the highest monthly volume since November 2025.