Ethereum (ETH) has had a rough start to the year, with its worst Q1 performance in history. The cryptocurrency's returns have been in the red for the first three months of the year, with a significant drop of 32.2% in February and another 6.27% in March ¹.
Several factors have contributed to this poor performance, including persistent selling pressure, diminishing network usage, and falling active addresses. Additionally, daily token burns have hit historic lows, with only 50.03 ETH valued at less than $100,000 burned on March 23 ¹.
However, there's a glimmer of hope. Some data suggests a potential reversal in Ethereum's fortunes, with the asset's holders moving their tokens off exchanges at an unprecedented rate. According to Santiment, less than 9 million ETH remain on trading platforms, the lowest in nearly ten years ¹.
This could imply that investors are opting to store their assets for the long term, reducing selling pressure. Many are also staking their ETH or moving it into DeFi platforms, which could signal confidence in a future price rebound.
While it's uncertain whether Q2 will be different for ETH, the cryptocurrency's fate hinges on key price levels and broader market trends. If it can reclaim $2,100 and sustain upward momentum, a recovery may be on the horizon ¹.
