CMC Research Hints at Potential ETH Rebound and BTC Breakout in Q2
Ethereum suffered a devastating Q1, plunging 43.85% in what CMC describes as its "steepest quarterly loss" since 2018." This decline followed an overheated rally in late 2024 and was compounded by February's Bybit hack that resulted in approximately $1.5 billion in stolen ETH.
The crypto market experienced extreme volatility throughout Q1, with the CMC Fear & Greed Index hitting a yearly low of 15 on March 11, reflecting persistent negative sentiment despite Bitcoin prices holding above $78K-$80K.
Two potential catalysts for Ethereum's rebound were identified: Ethereum spot ETF flows and renewed interest in Layer-2 scaling solutions.
For Bitcoin, maintaining support above $80K could pave the way for a Q2 breakout, potentially triggered by improved macro conditions, continued ETF inflows, or volatility compression.
