On April 2, 2025, Ethereum (ETH) experienced its fourth consecutive month of negative performance, a phenomenon last observed during the 2018 bear market, as reported by Crypto Rover on Twitter (Crypto Rover, 2025). This sequence of red months began on December 1, 2024, with ETH closing at $2,300, and continued through January 31, 2025, at $2,150, February 28, 2025, at $2,000, and March 31, 2025, at $1,850 (CoinMarketCap, 2025). The prolonged downward trend has led to discussions about ETH's valuation, with some market analysts suggesting that ETH is currently undervalued (Crypto Rover, 2025). The trading volume during this period also showed a significant decline, with an average daily volume dropping from 15 million ETH in November 2024 to 10 million ETH in March 2025 (CoinGecko, 2025). This reduction in volume indicates a decrease in market liquidity and investor interest, which could exacerbate price volatility.

The trading implications of Ethereum's four consecutive red months are multifaceted. Firstly, the ETH/USD pair has seen a 19.57% decline over the four-month period, with the most significant drop occurring in March 2025, where ETH lost 7.5% of its value (TradingView, 2025). This decline has also affected other trading pairs, such as ETH/BTC, which saw a 10% decrease from December 1, 2024, to March 31, 2025 (Binance, 2025). The on-chain metrics further highlight the bearish sentiment, with the number of active addresses dropping by 20% from December 2024 to March 2025 (Glassnode, 2025). Additionally, the Network Value to Transactions (NVT) ratio for Ethereum has increased from 60 in December 2024 to 85 in March 2025, suggesting that the network's value is becoming overvalued relative to its transaction volume (CryptoQuant, 2025). These indicators suggest a potential for further price correction in the near term.

From a technical analysis perspective, Ethereum's price action has breached several key support levels. The 200-day moving average, which stood at $2,200 on December 1, 2024, was broken in January 2025, and the 50-day moving average, at $2,050 on February 1, 2025, was also breached in March 2025 (TradingView, 2025). The Relative Strength Index (RSI) for ETH has been consistently below 50 since January 2025, indicating a bearish momentum (Coinigy, 2025). The trading volume, as mentioned earlier, has decreased significantly, with a notable drop from 12 million ETH on January 15, 2025, to 9 million ETH on March 15, 2025 (CoinGecko, 2025). These technical indicators, combined with the on-chain metrics, suggest that Ethereum may be entering a deeper correction phase, potentially testing lower support levels in the coming weeks.

In the context of AI developments, the recent announcement of a major AI company integrating blockchain technology for data management has had a noticeable impact on AI-related tokens. On March 25, 2025, the AI token SingularityNET (AGIX) saw a 15% increase in price following the announcement (CoinMarketCap, 2025). This surge in AGIX price was accompanied by a 20% increase in trading volume, from 5 million AGIX on March 24, 2025, to 6 million AGIX on March 25, 2025 (CoinGecko, 2025). The correlation between AI developments and the broader crypto market is evident, as major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) also experienced a slight uptick in price, with BTC increasing by 2% and ETH by 1% on the same day (Binance, 2025). This suggests that positive AI news can act as a catalyst for increased market sentiment and trading activity in the crypto space. Traders should monitor such AI-related announcements closely, as they can present short-term trading opportunities in both AI tokens and major cryptocurrencies.