Ethereum’s daily active address count continues to trend lower as it extended a multi-week decline in user participation. The decrease implies fewer users are interacting with smart contracts, dApps, and transfers, which indicates lighter on-chain engagement across the network.The 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 26. This 24% contraction isn’t just a superficial on-chain dip.ETH Network Is Quieting DownActive address trends have historically been deeply intertwined with price direction and have served as a proxy for network demand, user presence, and capital flow. And 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 window.The 7-day moving average of active addresses supports this downtrend even more convincingly by stripping out daily noise and offering a cleaner structural read. It too has retraced, from the 480,000 area to roughly 370,000, highlighting that the drop is steady rather than sporadic. As 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 price-wise.Without 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 fragile. Traders should treat this ongoing decline in fundamental network activity as a critical signal in their analysis.”Fail Here and $3,500 Becomes RealityAt the time of writing, Ethereum is trading at around $3,714, extending its recent slide as bearish sentiment continues to pressure the market. Over 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 alone.Following the latest dump, crypto analyst Ted Pillows said that ETH has now reached a critical support zone. As 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.The post Daily Active Addresses Crater on Ethereum (ETH): Price Slide Is Following Exactly On Cue appeared first on CryptoPotato.