- 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.
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.
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.
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.
