Ethereum [ETH] has emerged as one of the hardest-hit major cryptocurrencies in Q1 2025, shedding nearly 45% of its value while Bitcoin [BTC] managed to hold its ground near all-time highs. The stark contrast underscores diverging investor sentiment within the top crypto assets.
According to data from IntoTheBlock, Ethereum’s value dropped by 44.83% during the first quarter, in sharp contrast to Bitcoin’s relatively modest 14.67% decline. The disparity highlights a growing confidence gap, with ETH increasingly viewed as the riskier play amid regulatory scrutiny and waning demand for Ethereum-based assets.
ETH significantly underperformed this past quarter, losing nearly half its value, compared to Bitcoin "only" losing 15% pic.twitter.com/u2qp0VjeCv
— IntoTheBlock (@intotheblock) April 5, 2025
Even the S&P 500 outperformed Ethereum this quarter, amplifying concerns about ETH’s underwhelming performance in a mixed macro environment.
Adding fuel to the fire is the steep decline in ETH held on centralized exchanges, which has now fallen to 18.4 million — the lowest in over three years, per CryptoQuant. Traditionally, this would be seen as a bullish sign of investor conviction. However, in the current climate, the shrinking supply hasn’t translated into upward price momentum.
Instead, the exodus may signal passive strategies like staking, or worse — investors exiting altogether.
At press time, Ethereum trades at $1,788, barely holding above the critical $1,750 support. Technical indicators offer little reassurance: the Relative Strength Index (RSI) sits at 36.7, nearing oversold conditions, while the MACD shows only a faint hint of bullish divergence.
For over two weeks, ETH has remained range-bound, suggesting indecision rather than accumulation. Without a decisive reclaim of the $1,850–$1,900 range with strong volume, Ethereum faces increased downside risk. A break below $1,750 could pave the way for a test of the $1,650 level.
With exchange reserves dwindling and price momentum flatlining, Ethereum appears stuck in limbo — neither convincingly bearish nor signaling a recovery. As Q2 begins, the spotlight remains on whether ETH can shake off the malaise or continue to lag behind its crypto counterparts.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Ethereum Leads Blockchain Inflows with $704M Surge, Leaving Rivals in the Dust
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
