Ethereum Faces Decade's Worst Quarter, Drops 47.6%

Ethereum (ETH) is facing significant challenges, experiencing a 47% decline in value over the first quarter of 2025, marking its worst performance in a decade. The cryptocurrency's supply on exchanges has dropped to its lowest level since 2015, signaling a shift towards decentralized finance and staking, yet this has not positively impacted its price. A decline in decentralized exchange (DEX) activity and increased competition from layer-2 networks are contributing to the downturn, with DEX volumes on Ethereum falling by 34% recently. Analysts warn that if ETH cannot regain critical support levels, it may drop further, possibly approaching $1,060. The market is currently dominated by sellers, and despite some buying interest from large investors, the overall sentiment remains bearish. Ethereum's challenges are compounded by a lack of bullish momentum and declining network activity, leading to cautious behavior among traders.