Ethereum Struggles Below $1,600 While Buterin Promotes Privacy Solutions

Ethereum’s price has dipped below $1,600, raising concerns of a potential fall under $1,000. Despite this, it retains dominance in DApp revenue, generating over $1 billion in Q1 2025. Vitalik Buterin emphasises the need for privacy solutions amidst market volatility. Technical analysts remain cautious as ETH struggles with support levels and faces criticism from market veterans, while future upgrades like Pectra may provide recovery pathways.

Ethereum (ETH) has experienced a decline, trading below $1,600 after a 2.4% drop within 24 hours. Analysts caution about a possible dip beneath the $1,000 mark, indicating potential challenges ahead. Despite these concerns, Ethereum remains a leader in the DApp sector, generating over $1 billion in revenue in Q1 2025, demonstrating resilience amid market uncertainties.

Amidst market volatility, co-founder Vitalik Buterin is prioritising privacy, asserting its critical importance in the ecosystem. In his recent blog post, Buterin highlighted the dangers of unregulated corporate and governmental surveillance. Advocating for privacy-centric development, he noted that solutions like zero-knowledge proofs (ZK-proofs) can empower users by controlling information visibility while enhancing compliance with regulations.

In terms of performance, Ethereum’s DApp revenue surpassed its competitors significantly in Q1 2025, achieving $1.021 billion. Layer-2 networks such as Base generated $193 million, while BNB Chain and others lagged behind. Ethereum’s dominance is bolstered by its extensive ecosystem, supporting over 4,983 active applications across various sectors, including DeFi and NFTs, further underscored by a 51% share in the DeFi market with $46 billion Total Value Locked (TVL).

Despite Ethereum’s leading status, Trader Peter Brandt recently condemned the coin as “worthless trash,” arguing its complexity and high transaction fees hinder its utility. His criticisms reflect a growing scepticism among long-term market veterans regarding Ethereum’s value proposition.

Technical analysts continue to express concerns over Ethereum’s current trajectory. Following a rejection at the $1,700 resistance level, Ethereum trades around $1,590, with a relative strength index (RSI) of 40, indicating bearish momentum. Traders are advised to monitor support levels at $1,449; a breakdown here could lead to further declines towards $1,300, while a recovery above $1,700 would signal positive momentum.

Looking to the future, Vitalik Buterin suggests that the upcoming Pectra upgrade on May 7 could significantly enhance Ethereum. This update aims to improve scalability, security, and cost-efficiency. Future upgrades, including Fusaka and “Glamesome,” are anticipated, presenting opportunities for technological advancements that may help stabilise or increase Ethereum’s market value.