In the first quarter of 2025, asset performance has shown a clear split, with Ethereum (ETH) dropping to levels not seen since the FTX collapse, while gold has soared to new heights. As global markets prepare for possible economic challenges, crypto investors are pondering if this week’s key geopolitical events might trigger a turnaround.
### Ethereum’s Struggles Contrast with Gold’s Rally
Officially marking its worst start to a year, Ethereum’s price fell by 45% during the first quarter. It began the year trading at around $3,200 but gradually lost value, sinking below the $2,500 support in mid-February and reaching $2,200. In the past month alone, ETH has decreased by another 18.5%, currently trading at $1,813, which is about 63% below its all-time high of $4,878 from November 2021. It has also lost more than half of its value compared to the previous year. Short-term price action remains bleak, with the asset dropping 14% over the past week, underperforming the broader crypto market, which declined by 7.4%. The 24-hour trading range has shown volatility, with ETH fluctuating between a low of $1,782 and a high of $1,838 amid low liquidity and weak demand.
Meanwhile, gold is experiencing one of its strongest rallies in nearly four decades. This week, it reached a record high of $3,128 per ounce, marking a 20% gain for the quarter, its best performance since 1986. Analysts attribute the rally to growing fears of inflation and economic instability as the U.S. prepares for significant tariffs set to be announced on April 2. Analyst Michaël van de Poppe speculated that ETH’s bottom may coincide with gold’s peak, potentially setting the stage for a crypto market rebound.
### ETH/BTC Ratio Hits Four-Year Low
Ethereum’s struggles are more pronounced when compared to Bitcoin. The ETH/BTC pair has dropped to 0.02195, its lowest level since June 2020. At that time, Ethereum’s decentralized finance (DeFi) ecosystem was still emerging, with just $2 billion in total value locked. On-chain data has shown a crucial resistance zone between $2,200 and $2,580, where 12.43 million wallets hold 66.18 million ETH. Breaking above this level could trigger a short squeeze and reignite bullish momentum, but for now, the downward trend persists.
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