Ethereum (ETH)—the second-largest cryptocurrency by market capitalization—may ultimately seize the opportunity in the first quarter of 2025. Cryptocurrency experts have shared their analysis on X regarding ETH's potential bullish start to the new year.
What will Ethereum's price trend look like in the first quarter of 2025?
Despite Ethereum's nearly 43% increase year-to-date (YTD) this year, its performance pales in comparison to Bitcoin (BTC), which has appreciated over 115% in the same period. Additionally, various alternative Layer-1 blockchains, such as Solana (SOL) and SUI, have far outperformed ETH in 2024.
However, this momentum could soon turn in favor of ETH, as experts believe that the first quarter of 2025 may mark the beginning of a bullish phase for the leading global smart contract platform. According to cryptocurrency analyst Crypto Bullet, ETH appears to be forming a bullish flag on the daily chart, with a potential breakout to $6,000 expected by March 2025.
Similarly, cryptocurrency expert Anup Dhungana emphasized another bullish pattern forming on the weekly chart. He pointed out an inverse head and shoulders pattern—a widely recognized bullish indicator that signals a potential price surge.
According to Dhungana's analysis, ETH could soar to $8,000 by May 2025. However, he also warned that the digital asset might first drop to $2,800 before reaching a new all-time high (ATH).
Veteran cryptocurrency analyst Quinten Francois also shared an interesting perspective. He noted that ETH has historically recorded extraordinary gains in the first quarter following U.S. presidential elections. If this historical pattern holds, the first quarter of 2025 could be an unusually bullish period for Ethereum.
Will ETH staking cause supply tightening?
Additionally, Galaxy Research shared some predictions for Ethereum's price in 2025, stating that due to potential favorable regulation surrounding staking and decentralized finance (DeFi), the digital asset's trading price is expected to exceed $5,500 in 2025.
Galaxy Research also predicts that Ethereum's staking rate will exceed 50%, leading to supply tightening and potentially triggering significant price increases. The company explained:
The Trump administration may provide clearer regulation and guidance for the U.S. cryptocurrency industry. Among other outcomes, spot ETH ETPs may be allowed to let shareholders stake a certain proportion of their ETH holdings. Next year, staking demand is expected to continue rising, and by the end of 2025, it could exceed half of Ethereum's circulating supply, prompting Ethereum developers to seriously consider changing the network's monetary policy.
Furthermore, Galaxy Research stated that driven by anticipated regulatory benefits, the ETH/BTC trading pair is expected to trade above 0.06 by the end of 2025. This trading pair could rise from its current low of about 0.03 and may serve as a catalyst for the much-anticipated altcoin season.
Cryptocurrency analyst Carl Runefelt's recent analysis also predicts significant movements for ETH at the beginning of the new year. As of the time of writing, ETH is trading at $3,345, having fallen 0.7% in the past 24 hours.
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