Analysts at 10x Research suggest Ether may struggle to deliver substantial gains in the upcoming bull market, citing underwhelming performance in 2024 and ongoing concerns about its medium-term investment viability.
Active Validator Concerns:
A 1% decline in active validators over the past month raises questions about Ethereum’s network participation and overall demand outside staking.
Comparative Performance:
While Bitcoin surged 121.4% in 2024, Ether delivered a modest 46.29% return, further cementing its underperformance relative to BTC.
Bitcoin ETFs attracted $35.27 billion in inflows versus $2.66 billion for Ether ETFs, highlighting a preference for Bitcoin among institutional investors.
Analyst Perspectives
Bearish View:
Markus Thielen, 10x Research:
Ether’s lack of significant demand and delayed upgrades, such as the Duncan upgrade, hindered its ability to capitalize on market trends.
He remains skeptical about the upcoming Pectra upgrade, suggesting historical upgrades rarely lead to substantial price gains.
Bullish Outlook:
Michael van de Poppe, MN Capital:
Believes Ether could strengthen against Bitcoin in early 2025, potentially breaking the 0.04 ETH/BTC ratio in January.
Neutral Stance:
Other traders predict Ether’s price could either break out past $3,554 or retest $3,000, depending on broader market dynamics.
Key Metrics to Watch
Active Validator Growth: Trends in validator participation will likely influence investor confidence.
ETH/BTC Ratio: Currently at 0.03571, a breakout above 0.04 could signal a shift in Ether’s relative strength.
Market Catalysts: Upcoming Pectra upgrade and broader adoption trends will play a critical role in shaping Ether’s trajectory.
While Ether’s outlook for 2025 remains uncertain, its underperformance relative to Bitcoin and network challenges suggest a cautious approach for investors. However, bullish catalysts and potential adoption shifts could provide the momentum needed to regain investor confidence, according to Cointelegraph.
