The Descent of Ethereum versus the Surge in Gold: Insights from the 45% Q1 ETH Slump

The first quarter of 2025 saw a massive divergence in asset performance. Ethereum (ETH) plunged to new lows, experiencing its worst start to the year with a 45% drop, and now trades at $1,813. The instability of ETH is contrasted by the performance of gold, which hit its highest record of $3,128 per ounce, marking a 20% quarterly gain, its best since 1986.

Analysts link the gold rally to fears of inflation and economic instability as President Donald Trump prepares to implement sweeping tariffs. Market analysts speculate that the bottom of ETH may coincide with the peak of gold, possibly setting the stage for a crypto rebound.

The ETH/BTC ratio has also hit a four-year low, underscoring ETH's struggles.