Market analysts predict that Ether (ETH) could surpass its previous all-time high during the first quarter of 2025. Despite Bitcoin’s (BTC) recent record-breaking $100,000 milestone on December 6th, ETH has struggled to remain above the key $4,000 psychological threshold.
Why Ether May Soon Catch Up
However, last week’s crypto market deleveraging is indicative of a reset in leveraged long exposure. This development could set Ether up for a rally to a new all-time high during the first quarter of next year. Bybit analysts told Cointelegraph that they expect "a new all-time high in Q1 2025." They added, "ETH shows strength in derivative markets as the price catch-up anticipation is in full swing."
Historical Context and Price Action
Over the past six months, Bitcoin has risen over 54%, while Ether only generated a 12% return on investment. However, this trend may soon change. ETH’s historic correlation with the Bitcoin halving cycle suggests that it could start eclipsing more of Bitcoin’s momentum in December.
According to popular crypto analyst the Long Investor, "A break above $4,100 next, and this could run to the ATH level at $4,865. I am holding $ETH until $8,800." Based on Ether’s triangle formation on the daily chart, it may be setting up for a rally to above $8,800.
Ascending Triangle Formation
The Long Investor’s chart shows an ascending triangle formation that could lead to a significant price increase. This technical chart formation is used to spot the continuation of an uptrend. The analyst believes that Ether needs to cross the key $4,100 resistance level first before it can reach its all-time high.
Historical Correlation with Bitcoin Halving Cycle
In an Xpost, the popular crypto analyst Venture Founder said, "Every cycle, following the Bitcoin halving, Ethereum underperformed BTC for no more than 8 months until it explodes against BTC." They added, "We are in the 8th month now. Right on track. Then ETH/BTC Ratio since halving goes to no less than 700% after, which for this cycle means ETH/BTC = 0.39."
Growing Investor Interest in Ether
Another signal showcasing the growing investor interest in Ether is the high amount of newly created wallets. A daily average of over 130,000 Ethereum addresses were created during December, which marks an over eight-month high last seen in April.
Conservative Price Targets
However, other established crypto market participants are eying more conservative price targets. VanEck predicted a $6,000 cycle top for Ether price and a $180,000 Bitcoin price during 2025.
Related Articles
- Corporate Execs Sell Stock at Record Levels as Bitcoin Nears 130% YTD Returns
- Bitcoin Could Hit $160K in 2025, Fueled by Improving Macro Conditions
Explore More Articles Like This
Subscribe to the Finance Redefined newsletter for a weekly toolkit that breaks down the latest DeFi developments, offers sharp analysis, and uncovers new financial opportunities to help you make smart decisions with confidence. Delivered every Friday.
By subscribing, you agree to our Terms of Service and Privacy Policy.
