Ethereum’s journey in 2024 may not have been as dazzling as enthusiasts had hoped, barely managing a 47% gain and struggling to break above $4,000. In contrast, Bitcoin has been electrifying the market, soaring over 120% to achieve a remarkable new high, surpassing the six-figure mark in mid-December. But analysts have their sights set on Ethereum for the first quarter of the new year, predicting it could outshine Bitcoin, which has been consolidating recently.
Analyst Daan Crypto Trades noted on X that “ETH generally sees a good amount of action in Q1.” This observation draws on patterns from previous years, even during downturns against BTC.
The dynamics between Ethereum and Bitcoin often hinge on the ETH/BTC ratio, which showcases Ethereum’s value in relation to Bitcoin. Currently sitting at 0.035, this metric must improve as Ethereum eyes a significant level of 0.04 to ignite further momentum. Previous bull markets in 2020 and 2021 experienced notable movements in this ratio, which often triggered an altcoin season.
On the optimistic front, Ethereum community advisor Anthony Sassano has bold predictions for 2025, forecasting that ETH could soar to $15,000. A portion of this anticipated momentum will stem from projected inflows from Ether ETFs, expected to reach $50 billion. Sassano also expects that more traditional finance companies will start building on Ethereum, highlighting that BlackRock is poised to introduce a layer-2 tokenized real-world asset platform on the blockchain. “Ethereum will turn 10 years old in 2025, and I’m very confident that this year will be Ethereum’s most bullish year yet!” he shared passionately.
Echoing this enthusiasm, Steno Research released a report estimating that ETH could hit $8,000 in 2025, fueled by an upbeat sentiment surrounding an impending altcoin season. Analyst Ash Crypto provided a rather humorous yet hopeful perspective, suggesting “ETH will have a face-melting rally in Q1, 2025.” His reminders from past cycles serve as a motivator, showcasing how the market can bounce back even after setbacks.
As we enter 2025, the stage is set for Ethereum. Stani Kulechov, founder of Aave, emphasized that Ethereum is on track for a solid start to the year, referring to the Pectra upgrade, which will allow accounts to behave like smart contracts—promising scalability and improved user experiences.
As of early January, the price of ETH was edging up by 2%, hovering around $3,400. While the recent price action has been sideways after a drop from $4,000 in December, optimism abounds for what the first quarter may hold. Ethereum currently sits 30% below its all-time high established in November 2021, but an upcoming rally may just be around the corner.
With various predictions and developments on the horizon, many are hopeful that Ethereum could reclaim its former glory, making it an asset to watch closely in the coming months.
