Ethereum: 2025 “contrarian bet” potential
Ethereum (ETH) is seen as a potential “contrarian bet” in 2025, meaning it could become an undervalued asset in the future. This view is based on the possibility that the price of ETH could pull back to the triple bottom area again, which is seen as a precursor to a significant rise in 2025.
Matt Hougan, chief investment officer at Bitwise Asset Management, noted that despite Ethereum’s current challenges, especially after the ETH to Bitcoin (BTC) exchange rate fell to a 42-month low on September 16, it could become one of the currencies that the market generally does not favor by 2025. Although Hougan remains optimistic about Ethereum’s long-term prospects, he also admitted that its price performance may remain relatively sluggish for the rest of 2023.
In addition, the launch of the first Ethereum exchange-traded fund (ETF) in July did not bring the positive impact as expected. Instead, the ETF has experienced net negative flows since then, and the ETH price has fallen by nearly 30%. However, some analysts believe that if the price of ETH falls further, a triple bottom technical pattern may be formed, which will be an important signal for the rebound of ETH in the fourth quarter of 2024.
Specifically, the well-known analyst Crypto Bullet pointed out on September 17 that the price of ETH is likely to fall below $2,200, an event that will trigger more than $1 billion in leveraged short liquidations in exchanges, which may drive a price rebound. In addition, as Bitcoin enters the parabolic phase of the bull market cycle, Ethereum is also expected to gain stronger upward momentum.
Based on historical chart patterns and Bitcoin's average monthly return in the fourth quarter of this year, some analysts predict that Bitcoin will rise to $92,000 in the next three months. This upward trend may start in October and indirectly benefit cryptocurrencies such as Ethereum.
