Ethereum is a ‘contrarian bet’ in 2025, says Bitwise exec

Since the beginning of 2024, the price of Ether (ETH) has struggled to rise. Is Ether really a contrarian bet for 2024 or could it still make an inverted rally?

Ethereum is a “contrarian bet” through Q4

According to Matt Hogan, Chief Investment Officer (CIO) of Bitwise Asset Management, Ethereum may be the underdog heading into 2025.

Hugan said Ether is struggling, especially after ETH hit a more than 42-month low against Bitcoin (BTC) on September 16.

Despite his optimism on Ether, he noted that price action is likely to last for the rest of the year. Hugan wrote in a September 17 blog post:

“From my seat, none of Ethereum's challenges seem to exist, and the opportunities are many. I suspect the market will reevaluate Ethereum as we approach the November elections and any regulatory clarity that emerges. For now, it looks like a possible contrarian bet by the end of the year.

Moreover, Hugan notes that Ether's biggest rival Solana (SOL) is up 38% year-to-date (YTD), while Ether is flat. However, the price of Solana is struggling with Bitcoin, some analysts believe that it will follow the downward trend of Ether.

Related: Analysts Eye $92K BTC As Bitcoin Set For 3-Month Historic Rally

ETH price headed for further decline before 2025?

As Ether wrote in a September 19 X post, anonymous crypto trader GGG could see more downside in the short term:

I think we are in the same position on $ETH as in the left box. A bear market rally, then, is nuclear's underestimation for now.”

Additionally, the first Ethereum exchange-traded fund in July had little positive impact, with net negative flows and the price of ETH down nearly 30% since then.

But if the ETH price falls further, the next correction could end up forming a triple bottom chart, which could lead to the next Ether rally during the fourth quarter of 2024, noted analyst Crypto Bullet said in a September 17 X post.

“ETH 2021 vs ETH 2024. Same Triple Bottom? Looks pretty much the same so far.

On the 3-day chart, Ether price is retesting the 700-day storage area, which acts as a major support around $2,200, crypto trader Immortal wrote in a September 17 X post:

Ether price must stay above this key long-term support level to make further progress.

According to CoinGlass, a potential fall in the price of Ether to below $2,200 would trigger more than $1 billion worth of short liquidity across all exchanges.

As Bitcoin begins the parabolic phase of its bull cycle, the price of Ether may also gain further momentum. Based on historical chart patterns and average monthly returns for the fourth quarter of the year, some analysts are predicting a three-month Bitcoin rally to $92,000 that could begin in October.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.