Ether (ETH) prices are bleeding. This expression is somewhat exaggerated, but there are many reasons to use it.
If not, it’s enough to just observe the performance that native cryptocurrencies in the Ethereum ecosystem had in the first quarter of 2025.
As shown in the following Coinglas chart: This is the third time in history that ETH has closed its first negative quarter: In 2018, there was a 10.75% drop of 46.61% in 2022, and a 45.41% drop in 2025.
This gets even deeper when the price of Bitcoin (BTC) ETH is measured. It has fallen below 0.019 BTC, the lowest level since 2020.
As if this alone wasn’t enough, cryptographic analysts, data analytics companies On-chainThey warn that ETH prices fell below “price.”
This is a metric that shows the average amount paid to each investor who earned an ETH when each currency moved into the network.
This allows you to identify the actual value that the market assigns to assets beyond the daily noise of prices.
For crypto analysts, “price” provides a more realistic vision of the value investors have assigned to ETH.
The difference from current market prices, which can go up and down as a roller coaster, is that prices are based on historical data and are different from the contributions shown on trading platforms.
As you can see in the following graph, the ETH price is below $1,500 and the price (orange) is above $2,000.
Now, if the price of an ETH falls below the price, it means that most investors are experiencing losses.
But there is light in so much darkness. Historically, a fall below prices has put the Mark in the surrender stage.
But that means investors lose confidence and sell their holdings!
Yes, that’s true. However, since this behavior is historical data, it cannot be omitted from matching minimal areas, but usually, a moment of strong price recovery is expected.
The following graph shows the directional groups according to the amount of currency you own, which are prices created with ETH segmented by cohort. Each colour line represents the average ETH acquisition cost for various levels of ownership, from large whales (100,000 ETH) to medium owners. Comparing these lines with current prices (black lines) allows you to determine which groups are profits or losses.
However, here, every time an ET touches the lowest price, After that, I registered an upward movement..
A clear example is the red circle in the graph showing the collapse of Terra USD and Token Luna when you touched $870 before your ETH began to recover.
To understand how ETH turned out to be a quote under $2,000, it’s convenient to see what’s going on within your own ecosystem.
Ethereum’s big challenge
Before continuing, it is important to make it clear that the cryptocurrency market is suffering from the effects of mutual tariffs announced by US President Donald Trump within the framework of “Liberation Day.”
As Cryptootics reports, Most cryptocurrencies that make up the top 100 by market capitalization are red. In the midst of global tensions and economic turbulence awakening the “customs war.”
This context is unfavourable for Bitcoin (BTC) and cryptocurrency as ETH, as most investors consider risky assets. Generally, these scenarios require demand for financial products such as treasured bonds, and yields are low, but not subject to market fluctuations.
This requires an ecosystem to be added Ethereum is experiencing complex moments from Dencun’s activation.
This update, implemented in March 2024, reorganized the way data is managed on the Ethereum main network. This has reduced the operating costs of the second tier network (L2) as basic, enthusiasm, optimism, and arbitrum, which facilitates the publication of many transactions.
Despite these benefits, the results were not expected from ETH investors. This means that the growth of the L2 network has affected the price of cryptocurrency.
This occurs because many transactions occur outside the main network, which reduces the use of ETH to pay commissions. Simply put, it promotes the adoption of ecosystems, but reduces the demand for ether and therefore lowers prices.
Vaneck, a digital asset management company, is highlighted in its monthly cryptocurrency summary ETH is “a noticeable delay in March.”
In the report, analysts mentioned Standard Chartered, a UK-based multinational bank, which updated its asset price forecast by 2025, reducing it from 10,000 to $4,000.
Among the structural issues cited by experts, the fact that Coinbase’s L2 highlights a significant portion of the market capitalization of over $50 million and fees per transaction.
Another indication of weakening is that ETH no longer controls ecosystem values.
According to data from Ultra Sound Platform, Ethereum is worth $450 million. Of that total, $185,390 million corresponds to ETH, representing $2270 million for ERC-20 tokens and $12,660 million for mysterious tokens (NFTs).
But for some analysts, active prices are geared towards a strong upward movement.
Possibility of ETH’s Alsista
Cryptocurrency Market analyst Erika Espinal points out that ETH has bullish potential and comments. “No one says that, but ETH usage has not declined, but is used as collateral for taking loans within Defi.
In that part, Trader Mandela Amoose considers it a great price catalyst. It will be the integration of staking into funds cited in the Stock Market (ETF) Based on ether.
As reported by Cryptonotics, fidelity and 21 shares presented suggestions to include this option in the ETF.
It is necessary to clarify that Ethereum works with a Proof of Participation Mechanism (POS) to block investors from holdings in the network and earn returns through staffing.
Finally, the Ethereum Foundation, the entity responsible for promoting network development, prepares for the launch of Petra. As announced, this update brings “the greatest improvement in the history of user experience.”
This activation will take effect on April 30th, with changes to scalability, efficiency, user experience and staking.
Finally, it is only a matter of time before these novels act as tourniquets and know whether ether slows the bleeding that is suffering.
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