Ethereum's Price Plummets 20% in Q1 2025, Signals Potential Rebound

Ethereum, the second-largest cryptocurrency, experienced its worst quarterly performance in five years during the first quarter of 2025. The altcoin has been under significant pressure due to persistent bearish sentiments and macroeconomic events, leading to a substantial decline in its price. However, recent developments in the ETH price chart suggest a potential bullish turnaround.

Ethereum's price plummeted to a low of $1,400 earlier this month, driven by investors' bearish sentiments and the broader crypto market crash. The decline in ETH's price relative to Bitcoin also indicates underlying performance issues. Despite the ongoing selling pressure, a buy signal has emerged on the ETH price chart, hinting at a possible rebound. According to crypto analyst Ali Martinez, the TD Sequential indicator has shown a Setup 9, which historically marks the end of a bearish trend and presents buying opportunities. The smaller body size of the candle on the chart suggests weakening selling pressure and an increase in buying interest from traders. Additionally, the absence of major resistance levels near the chart could facilitate a smooth uptrend, barring any significant macroeconomic disruptions.

Ethereum has shown a 3% recovery over the past week, currently trading at $1,639.91 with a market capitalization of $197.88 billion. The token is moving within a symmetrical triangle formation, which could lead to either an uptrend or a downtrend. If the price moves upward, it could rally to $1,900. Conversely, a downward move could result in a crash to $1,380. Despite the uncertainty surrounding macroeconomic events, the long-term bullish outlook for Ethereum remains intact. A recent move by a crypto whale, who opened a $12.6 million ETH long position with 5x leverage, has influenced investor sentiment positively, indicating growing confidence in the altcoin.

Investors' buying interest in Ethereum is on the rise, while selling sentiments are declining. The emergence of a buy signal on the ETH price chart, coupled with the symmetrical triangle formation, suggests a potential bullish reversal. The absence of major resistance levels and the recent actions of crypto whales further support this optimistic outlook. However, it is essential to monitor macroeconomic events and market conditions, as they could impact Ethereum's price trajectory.