Ethereum Struggles in Q1 Amid Delays and Uncertainty
Key Takeaways
- Ethereum (ETH) experienced significant losses in Q1 2025.
- The market is awaiting a major upgrade to the Ethereum blockchain.
- 91% of Donald Trump’s crypto holdings are in Ethereum.
- Trump’s involvement is seen as a potential signal of confidence.
- Technical indicators suggest an oversold market.
Weak Start to the Year for Ethereum
Ethereum has had one of its weakest quarterly starts in years. In March 2025, the return stood at -10.95%, following a -31.95% drop in February. For comparison, the historical average for March is +19.48%.
The current price hovers around USD 1,887. Technical indicators such as the MACD (Moving Average Convergence Divergence) show increasing downward momentum. The RSI (Relative Strength Index) sits at 37 – a signal of oversold conditions. Daily charts reflect a continuing wave of selling.
Delayed Upgrades Create Uncertainty
Another source of uncertainty is the pending Ethereum upgrade. The community is awaiting the implementation of sharding – a technology aimed at scaling the network and lowering transaction fees. Until this upgrade is completed, market sentiment remains cautious.
Focus on Trump’s Ethereum Holdings
A surprising detail: 91% of Donald Trump’s crypto holdings – approximately USD 75.77 million – are invested in Ethereum. These assets are held through World Liberty Financial (WLFi), a company controlled by his family.
This involvement raises questions: Is it a vote of confidence in Ethereum? Or a risky move in a weak market environment? One thing is clear: Trump’s position could influence public perception of Ethereum – both positively and negatively.
Is Ethereum Currently Undervalued?
Some market observers see the current situation as an opportunity. They point to similar phases in the past – such as in 2020 – when Ethereum rebounded strongly after a weak period. From this perspective, Trump’s involvement is viewed as a sign of long-term potential.
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Others remain skeptical. They warn of continued downward pressure, particularly due to Bitcoin’s weak performance. Declining liquidity and waning investor confidence could also weigh on Ethereum.
Factors That Could Spark a Turnaround
Several factors could support a potential recovery for Ethereum:
- Sharding: The planned upgrade could improve scalability and reduce fees.
- Institutional Interest: Clearstream, a Deutsche Börse subsidiary, plans to offer Ether custody services.
- ETH ETFs: Approval could trigger new capital inflows.
- Regulatory Clarity: Legal certainty is key, especially in the areas of staking and tokenization.
Despite market challenges, Ethereum remains a core component of the DeFi (Decentralized Finance) space. Its technology continues to underpin many applications within the crypto ecosystem.
Our Assessment
Ethereum is currently under pressure – both technically and fundamentally. Its performance in Q1 2025 was weak, and ongoing uncertainty around the upcoming upgrade adds further strain.
Trump’s indirect support through his Ethereum investments is an interesting factor. It may be seen as a signal of confidence, but alone it’s not enough to reverse the trend.
What matters most is whether Ethereum delivers on its promised technical improvements and achieves regulatory clarity. Institutional interest is present – but without concrete progress, a recovery remains uncertain.
Ethereum currently presents both opportunities and risks. Investors should closely monitor developments.
Sources
- TradingView
- X (formerly Twitter)
- Deutsche Börse Group
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $1,817.54 |
| 24h % | 1.90 % |
| 7d % | -12.90 % |
| 30d % | -18.46 % |
| 60d % | -43.94 % |
| 1y % | -49.82 % |
| Market Cap | $219,298,633,413.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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