TLDR

• Ethereum (ETH) price failed to recover above $1,700 and dropped below $1,550 recently
• ETH formed a low at $1,410 and is currently trading around $1,589, up about 3% in 24 hours
• Technical indicators show resistance at $1,620 with a bearish trend line forming
• Ethereum lost around 45% of its value in Q1 2025, one of its worst quarterly performances since 2016
• The upcoming Pectra upgrade scheduled for May 7, 2025 is expected to improve staking, wallet features, and network infrastructure

Ethereum, the second-largest cryptocurrency by market capitalization, is having difficulty sustaining recovery momentum in early April 2025. Currently trading at around $1,589, ETH has seen a modest increase of approximately 3% in the last 24 hours but remains in bearish territory after a challenging first quarter.

The cryptocurrency experienced a substantial decline over the past three months, losing roughly 45% of its value. This equates to approximately $170 billion in market capitalization, marking one of Ethereum’s worst quarterly performances since 2016.

Recent price action shows ETH failed to maintain support above the $1,700 zone and extended losses, following Bitcoin’s downward trajectory. The price declined heavily below $1,650 and $1,620 levels.

The bears pushed the price below $1,550, with a recent low forming at $1,410. Since then, the price has corrected some losses, moving above the $1,550 level.

Trading volume has increased to $40.88 billion within 24 hours, showing a rise of 38.34%. This represents 22.11% of the total market cap and suggests heightened trader activity in response to uncertain market conditions.

Technical Analysis Points to Continued Resistance

On the technical front, Ethereum is trading below $1,620 and the 100-hourly Simple Moving Average. The price appears to be facing resistance near the $1,615 level.

A connecting bearish trend line is forming with resistance at $1,615 on the hourly chart of ETH/USD. This resistance coincides with the 50% Fibonacci retracement level of the downward move from the $1,815 swing high to the $1,410 low.

The next key resistance is around the $1,660 level, followed by a major resistance near $1,720. A clear move above this could potentially send the price toward the $1,820 resistance level.

On the downside, initial support is near the $1,540 level, with major support sitting at $1,505. If Ethereum breaks below this support, it might decline toward $1,420, with further support at $1,380 and $1,320.

During the recent market downturn, Ethereum briefly fell below the crucial $1,500 support on April 7, reaching its lowest position since late 2023. This decline coincided with broader market turbulence that resulted in nearly $890 million in crypto liquidations in a single day.

Pectra Upgrade on the Horizon

Despite current price challenges, there’s positive news on the development front. Ethereum developers have scheduled the Pectra upgrade for May 7, 2025, which will be the most significant update to the blockchain since March 2024.

The Pectra implementation includes 11 upgrades across three key areas: staking experience improvement, wallet feature enhancements, and network infrastructure upgrades. One notable feature will allow staking up to 2,048 ETH, providing relief to users currently divided across multiple validators with 32 ETH each.

Ethereum’s network fundamentals remain strong despite price volatility. The platform hosts approximately $124.5 billion in stablecoins and leads the DeFi sector with a locked value of around $49 billion. These figures indicate continued usage of the system regardless of price fluctuations.

However, institutional interest has waned in recent weeks. Ethereum exchange-traded funds experienced withdrawals of $403 million in March alone. This cautious attitude among institutional investors likely relates to broader uncertainty about Ethereum’s near-term price prospects.

Analysts at Standard Chartered 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.

Network activity metrics reflect these challenges, as fee generation has dropped from $142 million in January to just $21 million in March. Additionally, Ethereum’s burn rate has fallen to its lowest level since August 2021, with only 53 ETH burned per day last week.

Looking ahead, if the $1,500 threshold holds, Ethereum could potentially move toward the $2,000 psychological barrier. Some analysts suggest the token could reach as high as $2,200 within weeks if market sentiment improves.

Conversely, if bearish pressure persists, Ethereum could test support at $1,400 or even approach $1,000, its lowest price in several months.

For long-term investors, Ethereum continues to show promise despite current market difficulties. The network leads in real-world asset tokenization, controlling 54% of the market with $5 billion worth of tokens. The RWA sector is projected to grow from $2 trillion to $16 trillion by 2030.

With potential changes in Federal Reserve monetary policy and the upcoming Pectra upgrade, Ethereum has established a foundation for cautious optimism despite the current bearish market sentiment.