What Lies Ahead for Ethereum (ETH) Price in March 2025

Ethereum (ETH) navigated a challenging price landscape throughout February, remaining locked within a tight trading range. Recent market downturns, largely influenced by Donald Trump’s trade policies, have driven ETH to its lowest value in several months.

The increasing bearish sentiment raises questions for investors about whether March will see continued price declines or the beginnings of a recovery.

ETH Faces Challenges from Increased Supply and Heightened Selling Pressure

One critical concern for the ETH market is the rising circulating supply of the cryptocurrency. Insights from Ultra Sound Money reveal that over the last month, an additional 66,350 ETH coins, worth approximately $138 million at current values, have entered circulation.

As more ETH tokens flood the market, the overall available supply increases. If the demand does not keep pace with this surge, it could negatively influence the price as more coins become available for potential sale.

The lack of robust buying interest to meet this increased supply indicates that ETH could experience persistent weakness throughout March.

In tandem with this, ETH’s exchange balance presents additional concerning data. Following a significant drop to a year-to-date low of 17.27 million ETH on February 21, the balance soared back to 17.67 million ETH, reflecting a 2% increase over just a week.

A spike in the exchange balance typically suggests a greater volume of ETH is being deposited onto exchanges, indicating that owners may be preparing to sell their holdings.

This sell-side liquidity pressure could further contribute to downward price trends, especially if the trend continues that sees selling outpacing buying interest. Should this pattern persist, bearish sentiment is likely to intensify, encouraging traders to offload their holdings rather than add to them, ultimately exacerbating price declines.

Is There an Opportunity to Buy?

Despite current struggles, some market analysts propose that this volatility could present an attractive buying opportunity for investors eyeing long-term gains. Brian Quinlivan, an analyst at Santiment, shared his insights, suggesting that the current price points for ETH could be favorable for acquisition.

Quinlivan notes that both short-term and long-term holders of ETH are facing considerable losses, an unusual scenario for leading cryptocurrencies. Historically, such periods of market capitulation have led to significant price recoveries as larger investors move to accumulate assets post heavy selling periods.

“ETH could emerge as one of the better performers in 2025, considering its lackluster performance in 2023 and 2024 when compared to other cryptocurrencies. With both short-term and long-term investors currently at a loss, this provides a more opportune moment for increasing positions than what is typically seen in ETH’s history,” Quinlivan remarked.

Despite the current market turmoil with rising supply and increased exchange balances fueling bearish sentiment, several analysts hint that these conditions may set the stage for Ethereum's recovery.