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Ethereum’s steep challenges in early 2025 pose significant questions about its recovery potential amidst continuous sell-side pressure.
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With investor sentiment wavering, Ethereum’s future performance remains uncertain as it navigates the complexities of a bearish market.
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According to COINOTAG analysts, “The persistent sell-side momentum is creating a difficult environment for Ethereum to recover its losses.”
Ethereum struggles with its worst quarterly performance in a decade, raising concerns about recovery amid record sell-side pressure and market sentiment.
ETH’s worst Q1 in 10 years
For the first time in the last ten years, Ethereum has posted three consecutive months of losses to kick off a calendar year. From January to March 2025, ETH has dropped a staggering 47.63%, marking its worst Q1 on record. The decline began with a modest -1.28% in January, worsened dramatically to -31.95% in February, and extended into March with another -14.05%.
This rare triple-red quarter not only breaks ETH’s historical trend of stronger early-year performance but also places it far below the average Q1 gain of +30.22% seen across previous years. The data underscores how out of sync 2025 is with Ethereum’s usual seasonal pattern, raising serious uncertainty about its future trajectory.
Record-breaking sell-side dominance crashes market confidence
Meanwhile, Ethereum’s net taker volume has plunged into unprecedented territory, revealing intense sell-side dominance over the past three months. The 30-day Moving Average (MA) of Taker Volume has been consistently negative, indicating that aggressive sellers are overwhelming the buy side on exchanges.
The red zone has never persisted this deep or for this long, not even during prior bear markets. This capitulation-level selling pressure signals a serious crisis of confidence for ETH. With liquidity dwindling and buyers remaining scarce, reclaiming its all-time high in 2025 now appears more challenging than ever.
Ethereum shows signs of exhaustion, but no strong reversal yet
Ethereum’s recent price action remains around $1,900, reflecting minimal gains and a lack of strong momentum. At press time, the RSI was at 35, indicating that ETH was near oversold territory but has yet to experience a clear recovery bounce. Additionally, the OBV remained flat, highlighting subdued buying interest despite a reduction in selling pressure.
The MACD indicator revealed a narrowing gap between the MACD and signal lines, suggesting weakening bearish momentum. However, the histogram remains negative, signaling that bulls have yet to regain control. Ethereum needs a decisive break above the $2,000 mark, supported by strong trading volume, to escape its current range. Without this, the price may remain range-bound or risk sliding further. For now, Ethereum’s trend remains cautious and lacks the strength for a sustained breakout.
Conclusion
As Ethereum grapples with its most challenging quarter in a decade, the path to recovery is fraught with difficulties. The combination of sell-side pressure and weakened investor confidence suggests that ETH may continue to struggle. Investors should remain vigilant, monitoring key price levels and sentiment shifts as they navigate these turbulent waters.
