Ethereum faced significant headwinds in Q1 2025, from macroeconomic pressure and price underperformance to declining network fees and DeFi TVL. Yet amidst this turbulence, the network demonstrated resilience across its L2 ecosystem, staking infrastructure, and stablecoin economy. Key protocol upgrades like Pectra signal long-term investment in scalability and usability, even as near-term market sentiment remains cautious.