Market analysts are predicting that Ether (ETH) could surpass its previous all-time high during the first quarter of 2025. Despite Bitcoin’s (BTC) record-breaking $100,000 high on December 6, ETH has struggled to remain above the key $4,000 psychological threshold.
Why Ethereum May Be Setting Up for a Rally
According to a market report published by Bybit and Block Scholes, last week’s crypto market deleveraging is indicative of a reset in leveraged long exposure. This reduced leverage could set ETH up for a rally to a new all-time high during the first quarter of next year.
Bybit Analysts Expect a New All-Time High in Q1 2025
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."
Why Bitcoin Has Outperformed Ethereum This Year
However, over the past six months, Bitcoin has proven itself to be the more lucrative investment product for 2024. According to Cointelegraph data, Bitcoin rose over 54%, while Ether only generated a 12% return on investment.
Ether’s Potential Price Target
ETH may be setting up for a rally to above $8,800 based on an ascending triangle on the daily chart – a technical chart formation used to spot the continuation of an uptrend. However, ETH needs to cross the key $4,100 resistance level first, according to popular crypto analyst The Long Investor.
A Break Above $4,100 Could See ETH Reach $8,800
The Long Investor wrote on X: "A break above $4,100 next, and this could run to the ATH level at $4,865. I am holding $ETH until $8,800."
Ether’s Correlation with the Bitcoin Halving Cycle
Based on ETH’s historic correlation with the BTC halving cycle, ETH could start eclipsing more of Bitcoin’s momentum in December. 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, according to market intelligence platform Santiment.
Conservative Price Targets for Ether and Bitcoin
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.
What This Means for Investors
As we move into the new year, investors may be wondering what this means for their investment portfolios. With ETH potentially setting up for a rally to above $8,800, it’s essential to keep a close eye on market trends and adjust your strategy accordingly.
Conclusion
In conclusion, market analysts are predicting that Ether could surpass its previous all-time high during the first quarter of 2025. With reduced leverage and growing investor interest in ETH, it’s possible that we’ll see a rally to new heights in the coming months. However, investors should be cautious and keep a close eye on market trends before making any investment decisions.
Sources:
- Bybit and Block Scholes Market Report
- Cointelegraph Data
- The Long Investor X Post
- Venture Founder X Post
- Santiment Market Intelligence Platform