Ethereum collapsed below his «price made»

The price of Ether (eth) is bleeding. Although the expression is somewhat exaggerated, there are plenty of reasons to use it.

And if not, it is enough to observe the performance that the native cryptocurrency of the Ethereum ecosystem has had during the first quarter of 2025.

As the following Coinglass chart shows, This is the third time in its history that ETH closes a first negative quarter: In 2018 it suffered a 46.61% drop, in 2022 with 10.75% and in 2025 it has 45.41% fall.

The fall is further deepened when the price of ETH in Bitcoin (BTC) is measured, since this descended below 0.019 BTC, the lowest level since 2020.

As if this were not enough, Cryptoquant analysts, a data analysis firm on-chainThey warn that The ETH price fell below its «price made.»

It is a metric that shows how much paid, on average, each of the investors who acquired ETH, according to the last time each currency moved inside the network.

This allows identifying the real value that the market assigns to the asset, beyond the daily noise of prices.

For Cryptoquant analysts, the «price made» provides a more realistic vision of the value that investors assigned to their ETH.

The difference with the current market price, which can go up or down as a roller coaster, is that the price made is based on historical data and differs from the contribution it appears on trading platforms.

As can be seen in the following graph, the ETH price fell below $ 1,500 while the price made (orange line) is above 2,000 dollars.

Now, when the ETH price falls below the price made, it means that most investors are experiencing losses.

However, there is light amid so much darkness: historically, the falls below the price made mark a capitulation phase.

But that means that investors lost confidence and sell their holdings!

Yes, it’s true. But, being historical data, we cannot omit that this behavior, which coincides with minimal areas, usually anticipates moments of strong recoveries in the price.

The following graph shows the price made of ETH segmented by cohorts, that is, direction groups according to the amount of currencies they possess. Each color line represents the Average ETH acquisition cost for different levels of possession: from large whales (more than 100,000 eth) to medium holders. When comparing these lines with the current price (black line), you can identify which groups are in profit or loss.

However, it is important here to mark that every time ETH touched minimum price, Subsequently registered an upward movement.

A clear example is the red circle in the graph, which marks the collapse of Terra Usd and the Token Luna, when ETH touched the $ 870 before starting to recover.

To understand how ETH came to quote below $ 2,000, it is convenient to review what is happening within its own ecosystem.

Ethereum’s great challenge

Before continuing, it is important to clarify that the cryptocurrency market is suffering the impact of the reciprocal tariffs announced by Donald Trump, president of the United States, within the framework of the “day of liberation”.

As cryptootics has reported, Most cryptocurrencies that make up the top 100 by market capitalization are red In the midst of global tensions and economic turbulence that awakens the «tariff war.»

This context is not favorable for Bitcoin (BTC) and cryptocurrencies as ETH because most investors consider them risk assets. In general, in these scenarios, it is when demand for financial instruments such as treasure bonds, which generate less yields but are less exposed to market fluctuations increase.

To this we must add that the ecosystem Ethereum is going through a complex moment from the activation of Dencun.

This update, which was implemented in March 2024, reorganized the way in which data is managed in the Ethereum main network. Thanks to this, the operating costs of second -layer networks (L2), as a base, zeal, optimism and arbitrum, facilitating the publication of lots of transactions were reduced.

Despite these benefits, the results were not expected for ETH investors. Is that the proliferation of L2 networks had an impact on the price of cryptocurrency.

This occurs because many transactions occur outside the main network and that reduces the use of ETH for the payment of commissions. In simpler terms, although it promotes the adoption of the ecosystem, it decreases the demand of Ether and, therefore, its price falls.

Vaneck, a digital asset management firm, highlighted in its monthly cryptocurrency summary that ETH is the «marked lagging of March.»

In the report, analysts mention Standard Chartered, a multinational bank based in the United Kingdom, which updated the price projections of the asset by 2025 and reduced them from 10,000 to $ 4,000.

Among the structural problems that the specialists cited, the fact that the L2 of Coinbase has highlighted, more than 50,000 million dollars in market capitalization and a substantial part of the rates per transaction.

Also, another sign of weakening is that ETH no longer dominates the value in the ecosystem.

According to Ultra Sound platform data, Ethereum has a value of 450,000 million dollars. Of that total, 185,390 million dollars correspond to ETH, 242,070 million dollars to ERC-20 tokens and 12,660 million dollars to non-fungible tokens (NFT).

But, for some analysts, the active price is preparing for a strong upward movement.

Alcista potential for ETH

Erika Espinal, cryptocurrency market analyst, points out that ETH has bullish potential and remarks: “Nobody says it, but the use of ETH has not lowered, but has changed. It is now used as a collateral to take loans within decentralized finances (defi), especially in L2. It is not spent in fees (tariffs), but it is being used more than ever to be merciful. When those layers mature, the demand will explode. ”

For its part, Trader Mandela Amoussou, considers that the great price catalyst It will be the integration of staking into the funds quoted in the stock market (ETF) Based on Ether.

As Cryptonotics reported, Fidelity and 21Shares presented proposals to include this option in their ETF, which generates positive expectations.

It should be clarified that Ethereum works with a participation proof mechanism (POS), which allows investors to block their holdings in the network and obtain yields through the staffing.

Finally, the Ethereum Foundation, the entity responsible for promoting the development of the network, prepares the launch of Petra. As announced, the update will bring the “greatest improvement in history in user experience”.

The activation would be effective on April 30 and will make modifications in scalability, efficiency, user experience and staking.

It will be a matter of time to know if, finally, these novelties act as a tourniquet and slow down the bleeding that Ether is suffering.