Ethereum's 2024 performance has been underwhelming, rising a mere 47% without achieving a new peak price or sustaining trades above the $4,000 mark. In stark contrast, Bitcoin soared over 120%, surpassing its six-figure all-time high in mid-December.
However, industry analysts anticipate Ethereum will outpace Bitcoin in the first quarter of the upcoming year, especially as Bitcoin remains in consolidation for the last two weeks.
Ethereum, historically, experiences significant activity in Q1. Analyst Daan Crypto Trades noted that even during downtrends against BTC, Ethereum showed substantial movement as observed on Jan. 2. To kick off a new altcoin season similar to 2020 and 2021, the ETH/BTC ratio, a critical measure of Ethereum's value relative to Bitcoin, must pivot upward from its current level of 0.035 to surpass 0.04.
Anthony Sassano, a well-regarded Ethereum community advisor, forecasts Ethereum reaching $15,000 by 2025. This prediction is underpinned by expectations of over $50 billion in Ether ETF inflows this year as staked ETH products gain approval. Sassano also projects accelerated adoption as major traditional financial firms leverage Ethereum’s technology, with BlackRock anticipated to introduce a tokenized real-world asset platform. He envisions nation-states declaring ETH as a treasury asset, marking Ethereum's tenth year as its most bullish yet.
The financial intelligence firm Steno Research also signals optimism, projecting ETH might hit $8,000 in 2025, due to a forthcoming altcoin season. Analyst Ash Crypto predicts a vigorous rally in Q1 of 2025, drawing comparisons to past cycles where ETH surged 91% in January to reach new highs despite previous market downturns.
“IMO, ETH will have a face-melting rally in Q1, 2025,” said Ash Crypto.
Adding momentum, Aave's founder, Stani Kulechov, anticipates a robust start for Ethereum in 2025 following the Pectra upgrade. This enhancement will enable accounts to function like smart contracts, improving wallet scalability, user experience, and safety. Currently, ETH prices have appreciated by 2%, peaking above $3,400 in Asian markets. Despite recent sideways trading and a 30% drop from its all-time peak in November 2021, Ethereum briefly neared that summit in 2024 before retreating.
The future holds promise for Ethereum as the post hints at strengthening resilience and growth potential in Q1, embarking on a potentially game-changing trajectory.