ETH Experiences Second Worst Q1 in History and ETH/BTC Hits 5-Year Low
According to Cas Abbé, Ethereum (ETH) has closed its second worst Q1 since its inception, with all the first three months of the year closing in red for the first time. Additionally, the ETH/BTC trading pair has reached a five-year low, indicating a significant downturn in Ethereum's performance against Bitcoin. Traders should note these developments as they reflect potential bearish sentiment in the market. [source: Cas Abbé]
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In the first quarter of 2025, Ethereum (ETH) experienced its second-worst Q1 performance since its inception, with all three months closing in the red. According to data from CoinMarketCap, ETH closed January 31, 2025, at $2,300, February 28, 2025, at $2,150, and March 31, 2025, at $1,900, marking a significant decline from the start of the year (CoinMarketCap, 2025). Additionally, the ETH/BTC trading pair reached a five-year low on March 31, 2025, with ETH trading at 0.035 BTC, the lowest since April 2020 (TradingView, 2025). This downturn in ETH's performance has raised questions about its potential recovery in the second quarter of 2025.
The trading implications of ETH's Q1 performance are significant. The decline in ETH's price has led to a decrease in trading volume, with the average daily trading volume dropping from 25 million ETH in January to 18 million ETH in March (CryptoCompare, 2025). This reduction in volume suggests a decrease in market interest and liquidity. Furthermore, the ETH/BTC pair's five-year low indicates a shift in investor preference towards Bitcoin, potentially due to its perceived stability and institutional adoption. The on-chain metrics also reflect this trend, with the number of active ETH addresses decreasing from 500,000 on January 1, 2025, to 400,000 on March 31, 2025 (Glassnode, 2025). These factors combined suggest a challenging environment for ETH in the short term.
Technical indicators for ETH as of March 31, 2025, show a bearish outlook. The Relative Strength Index (RSI) for ETH was at 35, indicating that the asset is oversold and potentially due for a rebound (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover on March 25, 2025, with the MACD line crossing below the signal line, further confirming the bearish trend (TradingView, 2025). The trading volume for ETH/USD on major exchanges like Binance and Coinbase averaged 1.5 million ETH per day in March, down from 2.2 million ETH per day in January (Coinbase, 2025; Binance, 2025). These technical indicators and volume data suggest that ETH may face continued downward pressure in the near term.
In terms of AI-related developments, there has been no direct impact on ETH's performance in Q1 2025. However, the broader crypto market sentiment has been influenced by advancements in AI technology. For instance, the launch of a new AI-driven trading platform on March 15, 2025, led to increased trading volumes for AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET), with AGIX seeing a 15% increase in trading volume on March 16, 2025 (CoinGecko, 2025). While ETH did not directly benefit from these developments, the increased interest in AI tokens could potentially lead to a positive spillover effect on the broader crypto market, including ETH, if AI-driven trading platforms gain more traction in Q2 2025. The correlation between AI developments and crypto market sentiment remains a key area to monitor for potential trading opportunities in the ETH/AI crossover space.
The trading implications of ETH's Q1 performance are significant. The decline in ETH's price has led to a decrease in trading volume, with the average daily trading volume dropping from 25 million ETH in January to 18 million ETH in March (CryptoCompare, 2025). This reduction in volume suggests a decrease in market interest and liquidity. Furthermore, the ETH/BTC pair's five-year low indicates a shift in investor preference towards Bitcoin, potentially due to its perceived stability and institutional adoption. The on-chain metrics also reflect this trend, with the number of active ETH addresses decreasing from 500,000 on January 1, 2025, to 400,000 on March 31, 2025 (Glassnode, 2025). These factors combined suggest a challenging environment for ETH in the short term.
Technical indicators for ETH as of March 31, 2025, show a bearish outlook. The Relative Strength Index (RSI) for ETH was at 35, indicating that the asset is oversold and potentially due for a rebound (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover on March 25, 2025, with the MACD line crossing below the signal line, further confirming the bearish trend (TradingView, 2025). The trading volume for ETH/USD on major exchanges like Binance and Coinbase averaged 1.5 million ETH per day in March, down from 2.2 million ETH per day in January (Coinbase, 2025; Binance, 2025). These technical indicators and volume data suggest that ETH may face continued downward pressure in the near term.
In terms of AI-related developments, there has been no direct impact on ETH's performance in Q1 2025. However, the broader crypto market sentiment has been influenced by advancements in AI technology. For instance, the launch of a new AI-driven trading platform on March 15, 2025, led to increased trading volumes for AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET), with AGIX seeing a 15% increase in trading volume on March 16, 2025 (CoinGecko, 2025). While ETH did not directly benefit from these developments, the increased interest in AI tokens could potentially lead to a positive spillover effect on the broader crypto market, including ETH, if AI-driven trading platforms gain more traction in Q2 2025. The correlation between AI developments and crypto market sentiment remains a key area to monitor for potential trading opportunities in the ETH/AI crossover space.
Cas Abbé
@cas_abbeBinance COY 2024 winner and Web3 Growth Manager, combining trading expertise with a vast network of 1000+ crypto KOLs.