Ethereum is set to reach a new peak in Q1 2025, analysts predict
In the first quarter of 2025, Ether may surpass its previous all-time high, according to market analysts.
Bitcoin (BTC) breached the $100,000 mark for the first time in crypto history on December 6, but Ether (ETH) failed to stay above the key $4,000 psychological level.
However, Ether may soon begin to overtake Bitcoin's gains following last week's crypto market deleveraging, which according to a market report by Bibit and Block Scholes “signals a reset in its long exposure.”
The reduced leverage could set Ether to a new high for support in the first quarter of next year. Baybit analysts told Cointelegraph that they expect a “new all-time high in Q1 2025.” Adding: “ETH shows strength in emerging markets as price gains continue to gain momentum.”
ETH, BTC, 6-month chart. Source: Cointelegraph
However, Bitcoin has proven itself to be a more profitable investment product for 2024. In the last six months, Bitcoin has increased more than 54%, while Ether only generated a 12% return on investment, Cointelegraph data shows.
Related: Corporate execs sell stocks as Bitcoin nears 130% YTD returns
Analysts see a price of 8,800 ETH for Ether to gain Bitcoin
Based on the ascending triangle on the daily chart, Ether may be preparing for a rally above $8,800 – a technical chart formation used to identify the continuation of the uptrend.
However, Ether needs to break the $4,100 resistance level first, according to a prominent long-term investor analyst. “Next break above $4,100, and this could go to the ATH level at $4,865.” I would hold $ETH until $8,800,” the analyst wrote on X.
Ether Triangle Formation to $8.8k Source: Long Investor
Based on Ether's historical correlation with Bitcoin's half-cycle, ETH may begin to outpace Bitcoin further in December.
“Each cycle, following the Bitcoin halving, Ethereum blew up BTC over BTC for no less than 8 months,” noted crypto analyst Venture Founder said in an XX post. He added:
“We are now in the 8th month. On the right track. Then the halving of the ETH/BTC ratio goes no less than 700%, which means that for this cycle ETH/BTC = 0.39”.
ETH, BTC ratio post halving. Source: Venture Founder
Related: Bitcoin Could Reach $160K By 2025, Fueled by Improving Macro Conditions
Another sign of growing investor interest in Ether is the high volume of newly created wallets.
A daily average of more than 130,000 Ethereum addresses was created in December, an eight-month high in April, according to market data platform Sentiment.
A new Ethereum wallet has been created. Source: Santiment
However, other established crypto market participants are seeking more conservative price targets. VanEyck predicted a 6,000-cycle peak in Ether's price in 2025 and a $180,000 Bitcoin price.
Magazine: ‘China Microstrategy' Meitu Sells All Bitcoin and Ethereum: Asia Express
