Ethereum (ETH) Price Struggles to Recover From Q1 2025 Plunge

Ethereum, the second-largest cryptocurrency by market capitalization, continues to struggle with price recovery in early April 2025.

Ethereum price showed little recovery in early April as the cryptocurrency struggled to break out of bearish territory.

ETH traded at around $1,589 on Sunday. The token had shown modest gains of nearly 3% in the past 24 hours.

But the cryptocurrency remained firmly in the red for the year so far. It also clocked one of its worst quarterly performances since 2016 in Q1.

Ethereum Down 45% in Brutal First Quarter

The second-largest cryptocurrency lost nearly 45% of its value in the three months to March 31. This decline also resulted in a staggering $170 billion reduction in market capitalization.

Recent price action showed that ETH failed to recover above the $1,700 level and subsequently dropped below $1,550. On April 7, the token briefly fell below the crucial $1,500 support level, reaching a low of $1,410 - its lowest point since late 2023.

The price has since rebounded slightly, climbing above the $1,550 level. However, ETH is now trading below both the $1,620 zone and the 100-hourly Simple Moving Average, indicating persistent bearish pressure.

According to technical analysis, a connecting bearish trend line with resistance stands at $1,615 on the hourly chart. The currency faces significant hurdles in the vicinity of this level, with additional resistance situated around $1,660.

The first major resistance is at $1,720. A successful break above this level could propel ETH toward $1,820 or potentially $1,880 if momentum builds.

Further market activity showed that trading volume soared to $40.88 billion in the last 24 hours, indicating increased volatility. This represents a 38.34% rise.

The volume accounts for about 22.11% of the total cryptocurrency market cap and suggests heightened trader activity amid uncertain market conditions.

Ethereum's current market cap is $191.81 billion, with a circulating supply of 120.67 million ETH. Unlike Bitcoin, Ethereum does not have a maximum supply cap, which introduces an inflationary element that may affect long-term price expectations despite recent economic modifications to the token.

The recent market downturn coincided with broader turbulence that resulted in nearly $890 million in crypto liquidations in a single day. Asian share markets were among the biggest losers during this period, highlighting the increasing correlation between traditional financial markets and cryptocurrencies.

Pectra Upgrade Offers Hope Amid Challenges

On the other hand, Ethereum developers have scheduled the Pectra upgrade for May 7. This will be the most significant update to the blockchain since March 2024 and could attract renewed interest in the Ethereum ecosystem.

The upgrade comprises 11 improvements across three key areas: staking experience enhancement, wallet feature additions, and network infrastructure upgrades. One notable change will allow staking of up to 2,048 ETH, providing relief to users currently restricted to 32 ETH per validator.

Ethereum achieved an impressive milestone in March by overtaking other trading pairs to claim the top position in DEX trading volume for the first time since September 2024. Decentralized exchanges on Ethereum traded $64 billion in spot volume, outperforming both Solana and BSC.

The network currently hosts about $124.5 billion in stablecoins and $49 billion in DeFi value, maintaining its leadership despite price volatility. These figures indicate continued usage of the Ethereum ecosystem regardless of price fluctuations.

However, institutional interest has waned in recent weeks, with Ethereum ETFs experiencing withdrawals of $403 million in March alone. This cautious approach likely reflects broader uncertainty about Ethereum's near-term prospects.

Standard Chartered analysts have revised their year-end ETH price forecast downward from $10,000 to $4,000. They attribute this adjustment to competition from Ethereum's layer-2 scaling solutions, which have attracted users seeking lower transaction fees.

If the $1,500 support level holds, Ethereum could potentially push toward the psychological barrier of $2,000. Some analysts suggest the token could reach as high as $2,200 within weeks if market sentiment improves.

Conversely, continued bearish pressure could drive ETH down to test support at $1,400 or potentially fall further toward $1,000. The nearest resistance levels are at $1,850 and $1,920, with a break above the latter potentially triggering a rally toward $2,000.

Looking ahead, Ethereum's long-term potential remains substantial despite current challenges. The network continues to lead in real-world asset tokenization, controlling 54% of the market with $5 billion in tokenized assets