Market analysts predict that Ether (ETH) could surpass its previous all-time high during the first quarter of 2025. Despite Bitcoin’s (BTC) recent record-breaking price, Ether has struggled to stay above the $4,000 psychological threshold.
Crypto Market Delveraging Sets Stage for Ether Rally
The crypto market deleveraging that occurred last week is indicative of a reset in leveraged long exposure, according to a market report published by Bybit and Block Scholes. This reduction in leverage could set the stage for an Ether rally to a new all-time high during the first quarter of next year.
Bybit Analysts Expect New All-Time High in Q1 2025
According to Bybit analysts, ETH shows strength in derivative markets as the price catch-up anticipation is in full swing. They expect "a new all-time high in Q1 2025" and believe that Ether is setting up for a rally.
Comparison with Bitcoin’s Performance
Over the past six months, Bitcoin has risen by over 54%, while Ether has only generated a 12% return on investment. However, some analysts are optimistic about Ether’s potential to catch up to Bitcoin’s gains.
Technical Analysis Points to $8,800 Price Target
A technical chart formation used to spot the continuation of an uptrend, known as an ascending triangle, suggests that Ether may be setting up for a rally above $8,800. However, Ether needs to cross the key $4,100 resistance level first.
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. According to Venture Founder, every cycle following the Bitcoin halving, Ethereum underperformed BTC for no more than 8 months until it explodes against BTC.
Growing Investor Interest in Ether
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 from Established Crypto Market Participants
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
Market analysts predict that Ether could surpass its previous all-time high during the first quarter of 2025. Despite Bitcoin’s recent record-breaking price, Ether has struggled to stay above the $4,000 psychological threshold. However, the reduction in leverage following last week’s crypto market deleveraging and growing investor interest in Ether may set the stage for an Ether rally.
Recommendations
- Long-term investors: Hold onto their ETH until it reaches the $8,800 price target.
- Short-term traders: Consider buying ETH as it approaches the key $4,100 resistance level.
- New investors: Consider investing in ETH due to its potential for growth.
References
- Bybit and Block Scholes market report
- Cointelegraph data on Ethereum wallet creation
- Venture Founder’s Xpost on Ether’s historic correlation with the Bitcoin halving cycle