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Ethereum struggles at $1,750 – Assessing odds of ETH recovery

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Ethereum struggles as confidence wanes, shedding value amidst volatility, weaker demand, and declining exchange reserves.
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The continued decline in ETH's price tells a different story. A reduction in tokens on exchanges has not led to increased buying momentum. Instead, it may indicate broader investor disengagement, a shift toward passive holding, staking, or even potential exit strategies. While the supply is decreasing, investor confidence appears to be fading as well.
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  • Ethereum’s Q1 drop of 44.83% signals weakening investor confidence, diverging sharply from Bitcoin’s performance
  • ETH’s exchange reserves hit three-year lows, yet price recovery remains elusive amid market uncertainty

Ethereum’s [ETH] rough first quarter has left investors rattled, with the asset shedding nearly 50% of its value amid broader market uncertainty.

While Bitcoin has managed to hold its ground near all-time highs, ETH’s slump paints a starker picture of diverging sentiment within the crypto majors.

Adding to the concern, exchange supply for both assets continues to drop — especially for ETH, which just hit fresh lows.

Taken together, the trend signals not just price fatigue, but a deeper erosion of investor confidence across the board.

ETH diverges sharply from BTC as Q1 drawdown widens

Ethereum bore the brunt of Q1’s crypto correction, shedding 44.83% of its value compared to Bitcoin’s more moderate 14.67% decline, as shown in data from IntoTheBlock.

ethereum

Source: IntoTheBlock

The divergence underscores Ethereum’s vulnerability as risk appetites shift, regulatory concerns arise, and demand for Ethereum-based assets weakens.

While Bitcoin’s decline reflects broader macroeconomic volatility, Ethereum’s sharper drop indicates a confidence gap. Traders appear to be redirecting capital into Bitcoin, considered the “safer” cryptocurrency option.

Even traditional markets like the S&P 500 outperformed Ethereum, emphasizing its underperformance as one of the quarter’s most notable trends.

Exchange reserves hit new lows

Adding to Ethereum’s concerning quarter is a continued drop in exchange reserves, which have now fallen to just 18.4 million ETH — the lowest level in over three years, according to CryptoQuant data.

Normally, such a decline would be read as bullish, signaling long-term conviction and reduced sell pressure.

ethereum

Source: Cryptoquant

The continued decline in ETH’s price tells a different story. A reduction in tokens on exchanges has not led to increased buying momentum.

Instead, it may indicate broader investor disengagement, a shift toward passive holding, staking, or even potential exit strategies.

While the supply is decreasing, investor confidence appears to be fading as well.

Ethereum: Caught in no man’s land?

Trading at $1,788 at press time, ETH sat just above a key psychological level of $1,750, with no clear signs of bullish momentum.

The RSI hovered at 36.7 — edging toward oversold territory, yet lacking enough buying pressure to spark a reversal. Meanwhile, the MACD was showing weak upward momentum, with the histogram barely flipping green.

ethereum

Source: TradingView

The price has been range-bound for over two weeks, hinting at indecision rather than accumulation.

Unless ETH can reclaim the $1,850-$1,900 zone with volume support, downside risk remains. In the short term, a break below $1,750 could trigger a retest of $1,650.

 

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Samyukhtha L KM is a Financial Journalist and Market Analyst at AMBCrypto whose work is defined by one central question: Is the latest trend in blockchain hype, or history in the making? Her expertise is built on a strong academic foundation, with a Master’s in Journalism and Mass Communication from Amity University and a Bachelor’s in Commerce from the University of Madras. This dual qualification equips her with a unique skill set: the financial acumen to dissect market mechanics and the journalistic rigor to investigate and communicate complex subjects with clarity. Samyukhtha specializes in analyzing the socio-economic impact of blockchain adoption and assessing the viability of new market narratives. This includes a focus on high-velocity, community-driven assets such as memecoins, where she evaluates sentiment and fundamentals. She is dedicated to providing readers with insightful, well-researched commentary that looks beyond immediate market moves to understand the long-term implications of decentralized technology.
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