Market analysts are predicting that Ether (ETH) may surpass its previous all-time high during the first quarter of 2025. Despite Bitcoin’s (BTC) record-breaking price of $100,000 on December 6, ETH has struggled to stay above the key psychological threshold of $4,000.
Ether Struggles to Match Bitcoin’s Gains
Although Bitcoin has proven itself as a more lucrative investment product for 2024, Ether is expected to catch up soon. Over the past six months, Bitcoin has risen by over 54%, while Ether has generated a mere 12% return on investment.
Reduced Leverage Sets Up ETH for a Rally
Last week’s crypto market deleveraging, which is indicative of a reset in leveraged long exposure, may be setting up Ether 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."
A New All-Time High for ETH in Q1 2025?
Bybit’s analysts believe that Ether may soon start catching up to Bitcoin’s gains. According to an analysis by Bybit and Block Scholes, reduced leverage could set Ether up for a rally to a new all-time high during the first quarter of next year.
Technical Analysis: Ascending Triangle Formation
A technical chart formation known as an ascending triangle is signaling that ETH may be setting up for a rally above $8,800. The Long Investor, a popular crypto analyst, believes that Ether needs to cross the key resistance level of $4,100 first in order to reach its all-time high.
Ether’s 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, a popular crypto analyst, "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
The growing investor interest in Ether is evident from 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.
Conservative Price Targets for ETH and BTC
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 believe that Ether may surpass its previous all-time high in Q1 2025. Despite the struggles of ETH to stay above the key psychological threshold of $4,000, reduced leverage and growing investor interest in Ether could set up for a rally to a new all-time high during the first quarter of next year.
Market Outlook: A Rally to Above $8,800?
ETH may be setting up for a rally to above $8,800 based on an ascending triangle formation. However, Ether needs to cross the key resistance level of $4,100 first in order to reach its all-time high.
Historic Correlation with Bitcoin Halving Cycle: A Rally Ahead?
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, a popular crypto analyst, "Every cycle, following the Bitcoin halving, Ethereum underperformed BTC for no more than 8 months until it explodes against BTC."
Growing Investor Interest: A New All-Time High Ahead?
The growing investor interest in Ether is evident from 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.
Conservative Price Targets: What to Expect?
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.
Recommendation
Investors should keep an eye on the development of these technical indicators and the overall market sentiment. A new all-time high in Q1 2025 could be a strong buy signal for ETH investors. However, it’s essential to note that investing in cryptocurrencies carries significant risks, and investors should do their own research before making any investment decisions.
