Originally published on: December 14, 2024
Market analysts are predicting that Ethereum (ETH) could surpass its previous all-time high in the first quarter of 2025, setting the stage for a potential rally. Despite Ether’s struggle to stay above the $4,000 mark, experts believe that a reset in leveraged long exposure in the crypto market could propel ETH to new highs.
According to a market report from Bybit and Block Scholes, the reduced leverage on Ether could lead to a rally to a new all-time high in Q1 2025. Analysts suggest that ETH is showing strength in derivative markets, indicating anticipation for a price catch-up.
While Bitcoin (BTC) has been the more lucrative investment in 2024, with a 54% increase over the past six months compared to Ether’s 12% return, the tables may turn for ETH in 2025. Technical analysis shows that Ether may be on track to surpass $8,800, but it first needs to break through the key resistance level at $4,100.
Historical data on the correlation between Ether and the Bitcoin halving cycle suggests that ETH could start gaining momentum against BTC in December. The growing investor interest in Ethereum is evident from the high number of newly created wallets, with over 130,000 addresses being generated daily in December.
While some market participants are eyeing more conservative price targets for Ether, such as a $6,000 cycle top, others like VanEck are more bullish, predicting a $180,000 Bitcoin price in 2025. With Ethereum poised for potential record highs, it’s an exciting time for crypto investors to watch the market developments closely.
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