Ethereum is expected to reach a new all-time high in the first quarter of 2025, according to analysts.
Ethereum is expected to reach a new all-time high in the first quarter of 2025, according to analysts. Despite Bitcoin’s surge to $100,000 on Dec. 6, Ether has struggled to hold above the $4,000 mark. However, recent market shifts suggest Ethereum could soon start catching up to Bitcoin’s gains. Analysts from Bybit and Block Scholes have noted that the crypto market’s recent deleveraging indicates a reset of leveraged long positions, which could help position Ethereum for a rally in early 2025.
Ether’s price has been relatively stagnant compared to Bitcoin in recent months, with Bitcoin rising over 54% in the past six months while Ether only saw a 12% return. However, Ethereum’s price could soon break through the $4,100 resistance level, which is seen as a key threshold for future growth. A successful breakout above $4,100 could send the price toward the previous all-time high of $4,865. Some analysts are even predicting a rise to $8,800 if the uptrend continues.
Ethereum’s correlation with Bitcoin’s halving cycle is another key factor influencing predictions for 2025. Historically, Ethereum has underperformed Bitcoin for about eight months following a Bitcoin halving event, but after that, it has typically exploded in value. Given that the market is now about eight months post-halving, some analysts believe Ethereum will soon begin to outperform Bitcoin, potentially reaching a ratio of 0.39 against BTC, representing a 700% increase from current levels.
A significant rise in investor interest has also been seen in Ethereum, with over 130,000 new Ethereum wallets being created daily in December, marking the highest number in over eight months. This increased activity suggests growing confidence in Ethereum's potential for growth. Despite these bullish signals, more conservative predictions from firms like VanEck place Ether's 2025 cycle top at $6,000, with Bitcoin reaching $180,000.
Ethereum's growth is also supported by its strength in the derivatives market, which could lead to further price increases. As the price of Ether continues to build momentum, it may be on track to surpass previous highs and approach new milestones by the end of the first quarter of 2025. With increasing interest from both retail and institutional investors, Ethereum is expected to play a significant role in the upcoming crypto market cycle.
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