Market analysts are predicting that Ether could surpass its previous all-time high during the first quarter of 2025. Despite Bitcoin breaching the $100,000 mark for the first time in crypto history, Ether has been unable to stay above the key $4,000 psychological threshold.
Crypto Market Deleveraging
Last week’s crypto market deleveraging is indicative of a reset in leveraged long exposure, according to a market 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.
New All-Time High in Q1 2025
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."
6-Month Chart Comparison: ETH and BTC
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.
Ascending Triangle Formation
Ether may be 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. However, Ether needs to cross the key $4,100 resistance level first, according to popular crypto analyst the Long Investor.
Historic 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 Xpost, the popular crypto analyst Venture Founder said, "Every cycle, following the Bitcoin halving, Ethereum underperformed BTC for no more than 8 months until it explodes against BTC."
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.
Conclusion
In conclusion, market analysts are predicting that Ether could surpass its previous all-time high during the first quarter of 2025. Despite the current bearish trend in the crypto market, there are several indicators suggesting a potential rally to above $8,800 for Ether. The historic correlation with the Bitcoin halving cycle and the growing investor interest in Ether are just a few reasons why investors should keep an eye on this cryptocurrency.
Key Takeaways
- Market analysts predict that Ether could surpass its previous all-time high during the first quarter of 2025.
- Last week’s crypto market deleveraging is indicative of a reset in leveraged long exposure, setting up Ether for a potential rally.
- Bybit analysts expect "a new all-time high in Q1 2025" and are optimistic about Ether’s strength in derivative markets.
- Bitcoin has proven itself to be the more lucrative investment product for 2024, but Ether may start eclipsing more of Bitcoin’s momentum in December.
- The historic correlation with the Bitcoin halving cycle suggests that ETH could start exploding against BTC.
- Growing investor interest is evident in the high amount of newly created wallets.
Future Outlook
As we move into the new year, investors should keep a close eye on Ether and its potential to surpass its previous all-time high. While there are several indicators suggesting a rally to above $8,800 for Ether, it’s essential to remember that the crypto market is inherently volatile and subject to sudden changes.
Investment Strategies
For those interested in investing in Ether or Bitcoin, it’s crucial to develop a solid investment strategy based on thorough research and analysis. Investors should consider factors such as market trends, technical indicators, and historical data when making informed decisions about their investments.
Conclusion
In conclusion, the potential for Ether to surpass its previous all-time high during the first quarter of 2025 is an exciting development in the crypto space. As investors, it’s essential to stay informed and adapt to changing market conditions to maximize returns on investment. With careful analysis and strategic planning, investors can navigate the complex world of cryptocurrencies and make informed decisions about their investments.
Recommendations
- Investors should keep a close eye on Ether and its potential to surpass its previous all-time high.
- Develop a solid investment strategy based on thorough research and analysis.
- Consider factors such as market trends, technical indicators, and historical data when making informed decisions about your investments.
- Stay informed about the latest developments in the crypto space to maximize returns on investment.
