Despite Bitcoin's strong recovery since the crypto winter of 2022, Ethereum appears to have the potential to outperform Bitcoin in the coming period.
While Bitcoin has proven itself as the most secure and simple cryptocurrency, Ethereum is showing its strength in hosting applications and smart contracts on its network, making its price predictions interesting.
Here are the reasons why Ethereum could outperform Bitcoin in the coming weeks:
Ethereum bearish trend break
Ethereum recently recorded a significant technical breakout, with the price candle closing above the three-year downtrend line. This technical signal could pave the way for a sustained rally, mirroring the bullish moves seen in Bitcoin in recent months.
Improved regulatory and political environment
Ethereum looks set to benefit from pro-crypto policies, especially if a new administration like Trump’s is more supportive of DeFi. This support could remove some of the regulatory risks that have previously weighed on Ethereum’s price.
End of year high pattern
Financial markets have long experienced a seasonal “Santa Claus” rally, with December and January often being the most profitable. In previous cycles, such as 2020-2021, Ethereum has seen much higher relative gains than Bitcoin, raising the possibility of a repeat scenario in 2024-2025.
Ethereum has yet to hit new highs.
While Bitcoin has surpassed its all-time highs this year, Ethereum is still waiting to achieve this top, opening the way for further upside, especially if the market cycle continues in its usual upward direction.
Increasing institutional adoption of Ethereum
Despite Bitcoin’s leadership in institutional adoption, Ethereum is seeing increasing interest from financial institutions. With the potential of upcoming ETFs, Ethereum appears to be on its way to receiving a regulatory status similar to Bitcoin, providing additional support to the price.
