News 
April 3, 2025 
4 min. 
March proved to be a tough month for Ethereum, the top altcoin, as it faced a number of downward trends that mirrored a wider market downturn.
With the market now hinting at a potential rebound, the big question for April is: Will Ethereum be able to bounce back and resume its upward trajectory?
Ethereum’s Struggles in March: Price Drop, Declining Activity, and Rising Supply Pressure
In March, Ethereum took a significant hit, with its price plunging to a two-year low of $1,759 on March 11. This sparked a “buy the dip” spree amongst crypto traders, propelling the price back up to $2,104 by March 24. However, the rally did not last longer as profit-taking kicked in, leading to a sharp drop for the remainder of the month. By March 31, ETH ended below the crucial $2,000 mark, settling at $1,822.
Alongside its price troubles, Ethereum’s network faced a notable decline in activity during March. According to Artemis, the number of active addresses engaging in at least one ETH transaction dropped by 20% over the month.
This slump in user engagement led to a decrease in the network’s transaction volume, which fell by 21%, totalling 1.06 million transactions for the month.
Typically, increased user activity helps boost Ethereum’s burn rate — the rate at which ETH tokens are permanently removed from circulation — contributing to a deflationary effect. However, when activity drops, as it did in March, the burn rate decreases, leaving more ETH coins in circulation and raising the overall supply.
This trend resulted in a spike in Ethereum’s circulating supply, with data from Ultrasound Money showing an increase of 74,322.37 ETH tokens over the past 30 days. When supply rises without a corresponding increase in demand, it often exerts downward pressure on the price. This creates the risk of Ethereum’s struggles continuing into April.
In an exclusive interview with crypto news agency, Gabriel Halm, Research Analyst at IntoTheBlock, shared his perspective on Ethereum’s inflationary trends, suggesting that they may not be a major concern for the coming months.
Halm explained:
“While Ethereum’s supply has shifted from being deflationary, its annual inflation rate remains relatively low at just 0.73% over the past month. This is still far below pre-merge levels and lower than Bitcoin’s inflation rate. For investors, this modest inflation should not be a significant concern as long as network usage, developer engagement, and institutional adoption continue to grow.”
Addressing Ethereum’s recent price struggles linked to decreased network activity, Halm argued that the influence of this decline might have been overstated. He pointed out:
“From September 2022 to early 2024, Ethereum’s supply was deflationary, yet the ETH/BTC ratio still trended downward. This indicates that macroeconomic factors and broader market trends can have a more substantial impact than changes in token supply.”
When discussing what Ethereum holders should expect in April, Halm added:
“Ultimately, whether Ethereum experiences a downturn or a rally this month will likely be driven more by market sentiment and macroeconomic conditions than by short-term changes in supply dynamics. However, it’s important to monitor network developments that could spark renewed activity and strengthen ETH’s position in the wider crypto ecosystem.”
