Navigating Ethereum's Rocky Journey to Recapture 2021's $4,860 Peak (5 Key Influencers)
Ethereum's Quarter-End Prices: A Wild Ride
Let's take a look at the average price of ETH on popular exchanges over the last few quarters, according to data compiled by Yahoo Finance:
- Q1 '25 End - $3,273 (-6%)
- Q4 '24 End - $3,656 (+2%)
- Q3 '24 End - $3,800 (+7%)
- Q2 '24 End - $4,099 (-3%)
- Q1 '24 End - $4,402 (+51%)
Heading into Q2 2025, Ether (ETH) has faced a tough time in the crypto market since reaching its all-time high of $4,860 in November 2021. Over this period, Bitcoin (BTC) has outperformed ETH, despite having a larger market cap.
As ETH didn't rally as high as BTC in 2024 and shed more of its market cap during the market crash in February 2022, critics such as Quinn Thompson, Chief Investment Officer of Lekker Capital, are less optimistic about the future of Ether as an investment, dismissing it as "absolutely not" a smart buy at the end of March.
However, financial analysts remain hopeful for a recovery and long-term growth for ETH. Here's a breakdown of some hurdles Ethereum must overcome and factors that could drive its success:
1. The Long, Windy Road of Gas Wars
Following its transition from proof-of-work to proof-of-stake in September 2022, better known as "The Merge," Ethereum introduced a new incentive structure with the Dencun upgrade on Mar. 13, 2024. One consequence of this change is the decline in fees earned by the base chain, with revenues dropping from $30 million annually in 2023 to just $500,000 in Q1 of 2025.
Simultaneously, second-layer (L2) blockchains have gained traction, handling much of the network's business for lower fees and then periodically locking in a small hash of all their latest blocks with the base chain. These L2s use their own native currencies, which gives them an edge in competing for users. Assets such as Mantle (MNT), POL (POL), Arbitrum (ARB), Optimism (OP), Movement (MOVE), and Starknet (STRK) made their mark in 2024 and 2025, leaving some Ethereum stakers who rely on base chain fees feeling left out.
2. Trump-led Coattails: More for Solana?
Since 2023, U.S. President Donald Trump has displayed a strong affiliation with both Ethereum and Solana. While Trump and his family's businesses support both cryptocurrencies, Solana has received more favor during their ventures. The new Trump stablecoin, USD1, launched in March 2025, is accessible on both Ethereum and Binance Smart Chain, while President Trump's son, Eric Trump, endorsed Ether on social media in February. By contrast, the Official Trump (TRUMP) meme coin, which launched on Solana in February 2024, quickly became the fourth-largest meme coin by market cap at its launch.
3. King of Meme Coins: Is Solana Casting a Long Shadow over Ethereum?
Solana's meme coin community has been growing exponentially, drawing more attention from developers and on-chain transactions. Despite having some successful meme coins like Pepe (PEPE) and Shiba Inu (SHIB), Solana boasts a substantially larger trading volume and capitalization for its meme coins compared to Ethereum. This has led some analysts to claim that Solana's community culture creates a competitive disadvantage for Ethereum.
4. Wall Street's ETFs Prefer Bitcoin Over Ethereum
Major ETF investors favored Bitcoin over Ethereum during Q1 2025, with Bitcoin ETFs experiencing net inflows, while Ethereum ETFs saw outflows. This selling pressure has generally put a damper on the price of ETH, impacting its recovery during March.
5. Lacking the Bite of Bitcoin Maxis
Michael Saylor and Robert Kiyosaki are examples of influential figures who passionately advocate for Bitcoin, but Ethereum has yet to see a comparable figure at the corporate level with an equal level of conviction and enthusiasm. While Mark Cuban stands out as a vocal Ethereum supporter, he also remains bullish on Bitcoin, preventing him from serving as a true Ethereum maximist.
In conclusion, there are several hurdles Ethereum must conquer as it strives to surpass its long-term growth potential. However, Ether remains one of the most promising and widely used cryptocurrencies, with numerous factors fueling its ongoing relevance and adaptability to the evolving crypto landscape. Continue to check our site for more updates and in-depth analysis on the Ethereum price.
Ethereum Price Updates and Analysis on our website.
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- Despite Ethereum's tough time in the crypto market, financial analysts are hopeful for a recovery and long-term growth, pointing out several hurdles the cryptocurrency must overcome.
- In the third quarter of 2024, Ethereum's average price was $3,800, marking a 7% increase from the previous quarter.
- A significant challenge for Ethereum is the gas wars following its transition from proof-of-work to proof-of-stake in 2022, leading to a decline in fees earned by the base chain.
- To fight this decline in revenues, second-layer blockchains, such as Mantle, POL, Arbitrum, Optimism, Movement, and Starknet, have gained traction, handling much of the network's business for lower fees.
- USD1, the new Trump stablecoin, launched in March 2025, is accessible on both Ethereum and Binance Smart Chain, while the Official Trump (TRUMP) meme coin, which launched on Solana in February 2024, became the fourth-largest meme coin by market cap.
- Major ETF investors favored Bitcoin over Ethereum during Q1 2025, with net inflows to Bitcoin ETFs and outflows from Ethereum ETFs.
- Ethereum could benefit from having a corporate figure with equal levels of passion and enthusiasm for the cryptocurrency similar to Bitcoin's advocates, such as Michael Saylor and Robert Kiyosaki.
- The fourth quarter of 2024 ended with an average price of ETH at $3,656, a 2% increase from the previous quarter and a key indicator in Ethereum Price Updates and Analysis.
