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Ethereum (ETH) Price: Down 45% in Q1 2025 Despite Leading DEX Trading Volume
The cryptocurrency market has been plagued by volatility and uncertainty, with Ethereum (ETH) being no exception. As of April 3rd, ETH is trading at around $1,800, a staggering 45% decline from the start of the year. This downturn comes as Ethereum fails to maintain its upward momentum above the crucial $1,950 resistance level.
Despite this price struggle, it’s worth noting that Ethereum reclaimed its position atop decentralized exchange (DEX) trading volume in March. ETH-based DEXs processed a staggering $64 billion in transactions throughout the month, with no signs of slowing down. This impressive feat underscores the network’s enduring strength and resilience.
However, institutional interest remains lukewarm, at best. Derivatives data suggests that professional traders are hesitant to jump into the fray, citing concerns about short-term performance. The premium on Ether futures relative to spot markets has climbed slightly to 4%, up from 2% just days prior, but still lags behind the neutral 5% threshold.
Options market sentiment reinforces this notion, with whales exhibiting a distinct fear of further losses. This trepidation is reflected in the current 7% reading on the Ether delta skew metric, indicating that investors are not rushing to take positions during the downturn.
Institutional investors have been notoriously cautious when it comes to Ethereum investments. ETH exchange-traded funds suffered a massive $403 million loss in March alone, with only one day of inflows reported according to SoSoValue data. Standard Chartered analysts have even reduced their year-end price target for ETH from a lofty $10,000 to a more conservative $4,000, citing the rise of competing layer-2 solutions offering lower fees.
On the other hand, Ethereum’s long-term fundamentals remain rock-solid. The network continues to dominate the tokenization of real-world assets, boasting an impressive 54% market share with $5 billion in assets already tokenized. Industry forecasts predict this sector will balloon to a staggering $16 trillion by 2030.
Moreover, Ethereum stands to benefit significantly from staking-enabled ETH ETFs. Both the New York Stock Exchange and Chicago Board Options Exchange have filed for approval of staking in Ethereum ETFs with the Securities and Exchange Commission. If these products gain regulatory clearance, they could increase demand and lock away a substantial amount of ETH, potentially triggering a price boost.
For now, however, ETH must overcome its immediate challenge: breaking above the critical $1,865 resistance level. A successful breach could pave the way for potential gains up to $1,920 and eventually $1,950. Clearing this key barrier would mark a significant turning point in Ethereum’s recovery journey, potentially paving the way towards the psychologically important $2,000 milestone.
It remains unclear when, or if, Ethereum will be able to regain its footing. As it stands, ETH must contend with the prevailing bearish sentiment and lukewarm institutional interest before it can begin its ascent back up the charts.
Source: https://blockonomi.com/ethereum-eth-price-down-45-in-q1-2025-despite-leading-dex-trading-volume/
