Ethereum (ETH) price has recently dipped below $1,600 after reaching $1,690, currently trading at $1,577 with concerns of declining support. Vitalik Buterin prioritises blockchain privacy solutions while Ethereum remains dominant in DApp revenue, generating over $1 billion in Q1 2025. Technical analysis indicates potential for further decline below $1,000, despite upcoming upgrades aimed at enhancing performance and scalability.
Ethereum (ETH) has recently struggled to maintain its position above $1,600, declining from an initial spike to $1,690. Currently, it trades around $1,577, reflecting a decrease of approximately 1.76%. Traders are expressing concerns about its short-term performance as ETH has breached critical support levels, indicating potential for further decline.
Vitalik Buterin, Ethereum’s co-founder, is now placing a strong emphasis on privacy within the blockchain ecosystem, identifying it as a top priority for development. This focus indicates a strategic shift in priorities while the cryptocurrency faces fluctuating market conditions. The asset previously showed bullish momentum as it surged above key resistance levels at $1,600, only to retract due to subsequent selling pressure.
Technical analysis indicates a possible bearish trend for Ethereum, having recently violated a bullish trendline with support at $1,625. Market analyst Ali Marteniz identifies an ascending triangle breakout, indicating prior buyer demand, but the current price movements suggest weakening bullish momentum. ETH’s recent trading below the 100-hour Simple Moving Average further supports this cautionary stance.
Resistance is now significant around the $1,590 mark, which could inhibit any upward movement. Only by overcoming this barrier might Ethereum target $1,640, and subsequently $1,650, with a confirmed break above the latter potentially facilitating a rally back towards $1,690.
Despite its price challenges, Ethereum continues to flourish within the decentralised application (DApp) realm. For Q1 2025, Ethereum earned over $1 billion in fee revenue, showcasing its superior market position compared to other blockchain networks. Leading competitors such as Base and BNB Chain generated revenues of $193 million and $170 million, respectively.
Ethereum maintains its industry-leading stance due to its first-mover advantage, extensive security measures, and a robust DApp ecosystem comprising over 4,983 active applications. Furthermore, Ethereum’s Total Value Locked (TVL) in the DeFi sector stands at approximately $46 billion, constituting over half of the market.
Recent upgrades, like Dencun, have increased transaction throughput while reducing costs, addressing user concerns about high gas fees. Buterin advocates for enhanced privacy solutions within Ethereum, proposing zero-knowledge proofs (ZK-proofs) to maintain confidentiality and transparency in information sharing.
Currently, Ethereum is navigating a multi-year bearish range, with key support levels at $1,449 and $1,300 looming. Analysts predict a potential plunge below $1,000 if market conditions do not improve. Positive sentiment might return should ETH close above $1,700, potentially opening avenues towards a higher target of $1,861.
Looking forward, Ethereum’s development roadmap remains encouraging. The forthcoming Pectra upgrade, set for May 7, promises advancements in scalability, cost-efficiency, and security. Further enhancements, including the Fusaka and “Glamesome” upgrades, are anticipated to fortify the network, possibly aiding in future price recovery.
