Market analysts are predicting that Ether (ETH) could surpass its previous all-time high during the first quarter of 2025. Despite Bitcoin’s (BTC) recent breaching of the $100,000 mark for the first time in crypto history, Ether has struggled to remain above the key $4,000 psychological threshold.
Market Deleveraging Sets Stage for Rally
Last week’s crypto market deleveraging is a "reset in leveraged long exposure," according to a report published by Bybit and Block Scholes. This reduced leverage could set Ether up for a rally to a new all-time high during the first quarter of next year.
Bybit analysts told Cointelegraph that they expect "a new all-time high in Q1 2025." They added, "ETH shows strength in derivative markets as the price catch-up anticipation is in full swing."
Historical Context: Bitcoin’s Dominance
However, Bitcoin has proven itself to be the more lucrative investment product for 2024. Over the past six months, Bitcoin rose over 54%, while Ether only generated a 12% return on investment, according to Cointelegraph data.
Despite this, many analysts believe that Ether is setting up for a rally to above $8,800 based on an ascending triangle on the daily chart – a technical chart formation used to spot the continuation of an uptrend.
Resistance Level and ATH Prediction
However, Ether needs to cross the key $4,100 resistance level first, according to popular crypto analyst the Long Investor. "A break above $4,100 next, and this could run to the ATH level at $4,865," he wrote on X. "I am holding $ETH until $8,800."
Historical Correlation with Bitcoin Halving Cycle
Based on Ether’s historic correlation with the Bitcoin halving cycle, ETH could start eclipsing more of Bitcoin’s momentum in December.
In an X post, Venture Founder said, "Every cycle, following the Bitcoin halving, Ethereum underperformed BTC for no more than 8 months until it explodes against BTC." He added, "We are in the 8th month now. Right on track. Then ETH/BTC Ratio since halving goes to no less than 700% after, which for this cycle means ETH/BTC = 0.39."
Growing Investor Interest
Another signal showcasing the growing investor interest in Ether is the high amount of newly created wallets.
A daily average of over 130,000 Ethereum addresses were created during December, which marks an over eight-month high last seen in April, according to market intelligence platform Santiment.
Conservative Price Targets
However, other established crypto market participants are eying more conservative price targets. VanEck predicted a $6,000 cycle top for Ether price and a $180,000 Bitcoin price during 2025.
Key Takeaways:
- Market analysts predict that Ether could surpass its previous all-time high in Q1 2025.
- Reduced leverage after last week’s crypto market deleveraging sets the stage for a rally to new ATH levels.
- Historically, Ether has underperformed Bitcoin for no more than 8 months before exploding against BTC, and we are currently in the 8th month of this cycle.
- The ETH/BTC ratio since halving goes to no less than 700% after, which means ETH/BTC = 0.39 for this cycle.
Conclusion:
The growing interest in Ether is evident from the high number of newly created wallets and analyst predictions of a new all-time high. While some analysts are more conservative with their price targets, others believe that Ether has the potential to surpass its previous ATH levels.
Stay tuned for further updates on the crypto market and analysis from leading experts.
Sources:
- Bybit and Block Scholes
- Cointelegraph
- Venture Founder’s X post
