ETH diverges sharply from BTC as Q1 drawdown widens
Ethereum bore the brunt of Q1’s crypto correction, shedding 44.83% of its value compared to Bitcoin’s more moderate 14.67% decline, as shown in data from IntoTheBlock.

Source: IntoTheBlock
The divergence underscores Ethereum’s vulnerability as risk appetites shift, regulatory concerns arise, and demand for Ethereum-based assets weakens.
While Bitcoin’s decline reflects broader macroeconomic volatility, Ethereum’s sharper drop indicates a confidence gap. Traders appear to be redirecting capital into Bitcoin, considered the “safer” cryptocurrency option.
Even traditional markets like the S&P 500 outperformed Ethereum, emphasizing its underperformance as one of the quarter’s most notable trends.
Exchange reserves hit new lows
Adding to Ethereum’s concerning quarter is a continued drop in exchange reserves, which have now fallen to just 18.4 million ETH — the lowest level in over three years, according to CryptoQuant data.
Normally, such a decline would be read as bullish, signaling long-term conviction and reduced sell pressure.

Source: Cryptoquant
The continued decline in ETH’s price tells a different story. A reduction in tokens on exchanges has not led to increased buying momentum.
Instead, it may indicate broader investor disengagement, a shift toward passive holding, staking, or even potential exit strategies.
While the supply is decreasing, investor confidence appears to be fading as well.
Ethereum: Caught in no man’s land?
Trading at $1,788 at press time, ETH sat just above a key psychological level of $1,750, with no clear signs of bullish momentum.
The RSI hovered at 36.7 — edging toward oversold territory, yet lacking enough buying pressure to spark a reversal. Meanwhile, the MACD was showing weak upward momentum, with the histogram barely flipping green.

Source: TradingView
The price has been range-bound for over two weeks, hinting at indecision rather than accumulation.
Unless ETH can reclaim the $1,850-$1,900 zone with volume support, downside risk remains. In the short term, a break below $1,750 could trigger a retest of $1,650.
ETH diverges sharply from BTC as Q1 drawdown widens
Ethereum bore the brunt of Q1’s crypto correction, shedding 44.83% of its value compared to Bitcoin’s more moderate 14.67% decline, as shown in data from IntoTheBlock.

Source: IntoTheBlock
The divergence underscores Ethereum’s vulnerability as risk appetites shift, regulatory concerns arise, and demand for Ethereum-based assets weakens.
While Bitcoin’s decline reflects broader macroeconomic volatility, Ethereum’s sharper drop indicates a confidence gap. Traders appear to be redirecting capital into Bitcoin, considered the “safer” cryptocurrency option.
Even traditional markets like the S&P 500 outperformed Ethereum, emphasizing its underperformance as one of the quarter’s most notable trends.
Exchange reserves hit new lows
Adding to Ethereum’s concerning quarter is a continued drop in exchange reserves, which have now fallen to just 18.4 million ETH — the lowest level in over three years, according to CryptoQuant data.
Normally, such a decline would be read as bullish, signaling long-term conviction and reduced sell pressure.

Source: Cryptoquant
The continued decline in ETH’s price tells a different story. A reduction in tokens on exchanges has not led to increased buying momentum.
Instead, it may indicate broader investor disengagement, a shift toward passive holding, staking, or even potential exit strategies.
While the supply is decreasing, investor confidence appears to be fading as well.
Ethereum: Caught in no man’s land?
Trading at $1,788 at press time, ETH sat just above a key psychological level of $1,750, with no clear signs of bullish momentum.
The RSI hovered at 36.7 — edging toward oversold territory, yet lacking enough buying pressure to spark a reversal. Meanwhile, the MACD was showing weak upward momentum, with the histogram barely flipping green.

Source: TradingView
The price has been range-bound for over two weeks, hinting at indecision rather than accumulation.
Unless ETH can reclaim the $1,850-$1,900 zone with volume support, downside risk remains. In the short term, a break below $1,750 could trigger a retest of $1,650.
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