The first quarter of 2025 marked a stark contrast in asset dynamics as Ethereum plunged and gold surged to record levels.
Ethereum’s Struggles and Gold’s Rally
Q1 2025 is officially Ethereum's most challenging quarter, experiencing a 45% drop from the start of the year. Its price fell below $2,200, struggling to maintain a solid footing. Meanwhile, gold surged to $3,128 per ounce, marking its strongest rally in decades. Analysts attribute this to inflation fears and economic instability, which have driven the demand for gold.
ETH/BTC Ratio Hits Four-Year Low
The ETH/BTC pair dropped to 0.02195, the lowest since June 2020. Ethereum's DeFi ecosystem struggles to break through a critical resistance zone between $2,200 and $2,580, as revealed by IntoTheBlock data. The asset faces immense pressure without a breakthrough.
Impact of Geopolitical Events
The gold rally is largely due to economic policy concerns in the U.S., such as anticipated tariffs. Experts speculate that gold’s peak might coincide with Ethereum’s bottom, potentially creating an opportunity for a crypto rebound.
While gold continues its bullish trend, Ethereum faces one of its toughest periods. Geopolitical factors will play a decisive role in shaping future developments.
