Bulls are likely to jump at any opportunity to buy Ethereum back at $3,000; here’s why the outlook for 2025 is bullish.
Ethereum (ETH) price is largely flat as the year comes to a close, with traders busy analyzing recent market moves and their outlook for 2025. Currently trading around $3,330, Ethereum is expected to end December with losses of around 10%, after a more hawkish-than-expected Federal Reserve meeting in the middle of the month led to a broad sell-off in the market.
However, ETH is still around 40% higher than its levels before US President Donald Trump won the US election in early November. Although the price has lost some momentum in recent weeks and has fallen below the 21- and 50-day moving averages, it still has strong support above the 200-day moving average at 3,000$ETH . Chart analysis suggests that a short-term decline could be on the cards in the coming days, especially since Bitcoin (BTC) is tipped to fall below $90,000.
However, the price of Ethereum will face many difficulties and challenges in 2025, and here are the reasons why it is likely to recover soon and return to record new levels.
Ethereum price is likely to rise significantly in 2025, here are the reasons:
Donald Trump’s victory in the November elections and Republicans regaining majorities in both the House and Senate are set to open up a promising year for crypto markets in 2025. The Trump administration includes several pro-crypto leaders, starting with the new Treasury Secretary and SEC Chairman, as well as the newly created “Crypto and Artificial Intelligence Officer,” putting the US regulatory environment on the cusp of a major shift in favor of crypto. This shift could culminate in Trump signing a resolution allowing the US to start buying Bitcoin as a strategic reserve.
At the same time, Congress is likely to pass a comprehensive law that would give the sector much-anticipated regulatory clarity, which would represent a radical shift from the policies of the current Biden administration, which has worked hard, in coordination with the SEC and other regulators, to clamp down on the crypto sector since 2022. Unsurprisingly, Bitcoin price predictions for 2025 are very promising, and the situation could be even better for leading altcoins like Ethereum.
The US regulatory landscape that is hostile to cryptocurrencies in recent years has also hurt the development and adoption of key Web3 areas such as decentralized finance (DeFi). So even if Ethereum manages to avoid being classified as an “unregistered security” by the SEC and launching Ethereum spot ETFs in the US, its path to adoption is still fraught with difficulties. However, a favorable regulatory environment for these assets in the US could revitalize the market, which bodes well for DeFi and Web3 blockchains like Ethereum.
But what about the fierce competition that Ethereum faces? Competitors will undoubtedly continue to emerge and grow, but Ethereum remains the leader in the altcoin market, with more than 55% of the total dollar value of cryptocurrencies locked in DeFi smart contracts being on the Ethereum blockchain according to DeFi Llama, thanks to it being the most reliable blockchain.
Moreover, Ethereum has the backing of major financial institutions on Wall Street such as BlackRock, which has launched investment products represented digitally on the Ethereum blockchain, in addition to dozens of other major companies that are developing solutions and applications on it.
Ethereum's competitors are likely to continue to grow, but there is no reason to believe that Ethereum will not continue on its successful path.
What is the next direction for Ethereum price?
For a long time, Bitcoin’s price breakout to new highs was accompanied by Ethereum’s price catching up within two months at the latest. Bitcoin has already entered its final price discovery phase for a month and a half, which means that ETH could be on the verge of testing new highs by mid-January, which would coincide with Trump’s inauguration, and could see gains of up to 50% from its current levels. Once Ethereum enters a new phase of price discovery, the floor will be wide open, and Fibonacci levels can give us an idea of how much higher it could go.
For example, during the Ethereum bull run between 2020 and late 2021, ETH price made a high just above the 4.236 Fibonacci retracement level, surpassing the highs of the 2017/2018 cycle and rising from the lows of the 2020 bear market.
If Ethereum can repeat this feat in 2025, its price could reach new highs in the $17,700 range during this cycle, which would mean gains of more than five times current levels.
Are these predictions too positive? Perhaps. But in any case, the Ethereum price outlook in 2025 looks promising indeed, and buying it for $3,300 is an attractive opportunity not to be missed.