Ethereum, the leading altcoin, faced significant challenges in March, marking a series of bearish trends reflecting broader market slowdowns. The month began with a sharp decline on March 11, when ETH plummeted to a two-year low of $1,759**. This drop triggered traders to "buy the dip," pushing prices to a peak of **$2,104 by March 24. However, profit-taking resumed, causing the coin to decline sharply through the month’s end. By March 31, ETH closed below the critical $2,000** threshold at **$1,822.
Key Trends in Ethereum’s March Performance
- Price Volatility: ETH fluctuated between $1,759 and $2,104, ending the month 15% lower.
Network Activity Decline:
- Daily active addresses dropped 20%.
- Monthly transactions fell 21% to 1.06 million.
Supply Dynamics:
- ETH’s circulating supply surged by 74,322 coins due to reduced burn rates.
- Annualized inflation remained low at 0.73%, per IntoTheBlock analysis.
👉 Why Ethereum’s supply changes matter for long-term holders
Analyst Insights: Beyond Supply Concerns
Gabriel Halm, Research Analyst at IntoTheBlock, noted in an exclusive interview:
"ETH’s current inflationary trend isn’t a major red flag for April. Macro forces—like Bitcoin’s dominance and interest rates—often outweigh tokenomics in the short term."
Halm emphasized that network adoption (developer activity, institutional interest) remains more critical than month-to-month supply fluctuations.
FAQs: Ethereum’s April Outlook
Q: Will ETH drop further in April?
A: While possible, ETH’s direction hinges more on macroeconomic trends (e.g., BTC halving, Fed policy) than its supply.
Q: How does Ethereum’s inflation compare to Bitcoin’s?
A: At 0.73%, ETH’s inflation is lower than Bitcoin’s current ~1.8% rate.
Q: What catalysts could reverse ETH’s downtrend?
A: Key upgrades (e.g., EIP-4844) or institutional ETF approvals may reignite demand.
Strategic Takeaways for Investors
- Monitor Macro Indicators: BTC price action and Fed rate decisions may dictate ETH’s near-term moves.
- Focus on Adoption: Track developer activity (GitHub commits) and Layer-2 transaction growth.