Crypto Bloodbath vs. Gold Boom: What Q1’s 45% ETH Crash Reveals

The first quarter of 2025 has delivered a stark divergence in asset performance, with Ethereum (ETH) plunging to depths not seen since the collapse of FTX while gold has surged to record highs.

As global markets brace for potential economic turbulence, crypto investors are left wondering whether this week, marked by key geopolitical events, could finally bring a reversal.

Ethereum’s Struggles Contrast with Gold’s Rally

Q1 2025 is officially ETH’s worst start to the year, as market analyst Michaël van de Poppe noted after its price plunged 45% across the three-month period. It started the year trading at around $3,200 but steadily shed much of that value, dropping below the $2,500 support in mid-February before touching $2,200.

This past month alone, ETH has lost another 18.5%. The cryptocurrency is trading at $1,813, almost 63% below its all-time high of $4,878, set in November 2021. Additionally, it has lost more than half of its year-on-year value.

The short-term price action is equally grim. Over the past week, the asset has fallen 14%, underperforming the broader crypto market, which declined by a less glaring 7.4%. The 24-hour trading range has also been quite volatile, with ETH swinging between a low of $1,782 and a high of $1,838 amid thin liquidity and weak demand.

Meanwhile, as the second-largest cryptocurrency by market cap flounders, gold is experiencing one of its strongest rallies in almost four decades. This week, the precious metal jumped to a record high of $3,128 per ounce, marking a 20% gain for the quarter, its best performance since 1986.

According to analysts, the rally has been fueled by growing fears of inflation and economic instability as U.S. President Donald Trump prepares to announce sweeping tariffs on April 2, dubbed “Liberation Day.”

“Gold is rallying due to the uncertainties surrounding the tariffs from Trump,” said van de Poppe. He further speculated that ETH’s bottom may coincide with gold’s peak, setting the stage for a possible rebound in crypto markets:

“I don’t know where this will bottom, although I suspect that the peak of Gold and the bottom of Ethereum are going to be correlated.”

ETH/BTC Ratio Hits Four-Year Low

The asset’s struggles are even more pronounced when measured against Bitcoin. The ETH/BTC pair has plummeted to 0.02195, its lowest level since June 2020. At that time, Ethereum’s decentralized finance (DeFi) ecosystem was still in its infancy, with just $2 billion in total value locked (TVL).

On-chain data from IntoTheBlock has revealed a critical resistance zone between $2,200 and $2,580, where 12.43 million wallets hold 66.18 million ETH. A breakout above this level could trigger a short squeeze and reignite bullish momentum, but for now, the path of least resistance remains downward.

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