- Ethereum’s RSI hints at positive trends, but market sentiment remains cautious amid bearish signals.
- MACD suggests bearish momentum may be slowing, yet a trend reversal requires more confirmation.
- Solana’s rise and reliance on layer-2 solutions challenge Ethereum’s economic model and network activity.
Crypto Rover believes Ethereum is undervalued despite its recent price struggles. He points out that Ethereum historically performs well in the first quarter of a bull market year. Past trends suggest strong gains during this period, but Ethereum’s 2025 movement has not followed the same pattern.
Ethereum’s Q1 Performance: Historical Trends vs. 2025
Ethereum’s past performance in the first quarter of bull market years has historically had growth. In 2017, Ethereum surged from $8 in February to $56 in March, a 214.11% gain from January to March.
Similarly, in 2021, Ethereum started the year strong, rising from $1,400 in February to over $1,900 in March, a 78.51% increase in the same period. Both years showed bullish momentum fueled by strong demand and market optimism.
However, in 2025, Ethereum’s price movement has diverged from these patterns. This suggests that Ethereum is experiencing a downturn rather than the usual Q1 rally. Market influence is different from previous cycles, raising concerns about Ethereum’s current standing.
Technical Indicators Suggest Show Market Sentiment
Ethereum’s price shows fluctuations with short term gains but long term weakness. At press time, Ethereum was trading at $2,761.80, a 0.08% increase in 24 hours but a 17.74% decline from previous levels. Recent movements indicate a slight upward trend, but market indicators suggest caution.
Ethereum’s trading activity shows high volume, suggesting strong market interest. The RSI is at 40.11, close to the neutral 50 level, indicating neither strong bullish nor bearish momentum. The RSI has been between 30-50, moving above 34.90, hinting at a possible shift. If RSI crosses 50, buying pressure may increase.
The MACD is at a negative level at -114.74, with the MACD line below the signal line. This points to a bearish trend, though recent histogram movements suggest the bearish momentum is slowing. If the MACD histogram continues to shrink, a trend reversal could occur, but confirmation is needed.
Ethereum Faces Competitive Pressures
Beyond price action, Ethereum has growing competition from alternative blockchains. According to JPMorgan, Solana’s rising dominance presents a challenge. Ethereum’s reliance on layer-2 networks has also become a concern.
While these scaling solutions help ease congestion, they divert activity away from the Ethereum mainnet, potentially reducing transaction fees and validator rewards. Uniswap’s upcoming migration to Unichain further deepens this trend.
As one of Ethereum’s largest gas consuming protocols, Uniswap’s shift may impact Ethereum’s network activity and revenue generation. JPMorgan analysts warn that continued dependence on layer-2 networks could weaken Ethereum’s economic model.
Despite bearish conditions, the RSI suggests positive trends. A decline in exchange net flows indicates that investors are shifting toward self custody, which may reduce selling pressure.
