The user activity on the Ethereum network has dropped to its lowest point of the year, coinciding with Ethereum's native token (ETH) falling below $3,000 for the first time since November. This decline in ETH's price is part of a broader market downturn, but a significant factor contributing to its struggles is a reduction in active addresses on the Ethereum network. The decrease in active addresses suggests lower transaction volumes and engagement with decentralized applications, which weakens ETH's price momentum and makes it more inflationary. Additionally, an increase in ETH tokens entering circulation has added to the overall supply and can lead to a price drop. Currently, ETH is trading at $2,595, reflecting a 16% price drop in the past 24 hours. The negative Balance of Power indicator suggests strong selling pressure, and if the downtrend continues, ETH's value could fall further to $2,500 or $2,224. However, a positive shift in market trends could push ETH's price up to $2,811.



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