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Ethereum (ETH) – the second largest cryptocurrency by market size – may finally catch its moment in Q1 2025. Crypto experts took to X to share their analysis of the possible start of the new year revival of ETH.
Ethereum Bullish Price Action in Q1 2025?
Although Ethereum is up about 43% on a year-to-date (YTD) basis, its performance stains compared to Bitcoin (BTC) which has appreciated more than 115% during the same period. In addition, various Layer-1 blockchains, such as Solana (SOL) and SUI have significantly outperformed ETH in 2024.
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However, the momentum may soon change for ETH, as experts suggest that Q1 2025 could mark a bullish phase for the world’s leading smart contract platform. According to crypto analyst Bullet, ETH seems to be the case to build a bullish pennant on the daily chart, with a potential breakout to $6,000 expected in March 2025.
Similarly, cryptocurrency expert Anup Dhungana highlighted another bullish pattern forming on the weekly chart. He pointed to an inverse head and shoulders pattern – a widely recognized indicator that suggests an upcoming price increase.
Based on Dhungana’s analysis, ETH may rise to $8,000 in May 2025. However, he also warned that the digital asset may initially fall to $2,800 before reaching a new all-time high (ATH).
Veteran crypto analyst Quinten Francois also shared an interesting opinion. He noted that ETH has historically recorded exceptional gains during Q1 of the year following a US presidential election. If this historical pattern holds, Q1 2025 could be unusually bullish for Ethereum.
ETH Staking To Create A Supply Crunch?
In addition, Galaxy Research shared some price predictions about Ethereum towards 2025, which say that the digital asset will trade above $5,500 in 2025 due to possible positive rules regarding staking and decentralized finance (DeFi).
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Galaxy Research also pointed out that Ethereum’s staking the rate will exceed 50%, creating a shortage of goods that may cause a sharp price increase. The company explained:
The Trump administration is likely to provide greater regulatory clarity and direction to the crypto industry in the US Among other consequences, it is possible that locally based ETH ETPs will be allowed to hold a certain percentage of the ETH they hold on behalf of their shareholders. The demand for staking will continue to rise in the coming year, and will probably exceed the circulating portion of Ethereum by the end of 2025, which will make Ethereum developers seriously consider changes in the network’s monetary policy.
Additionally, Galaxy Research has suggested that the ETH/BTC trade will close trading in 2025 above 0.06, encouraged by anticipated regulatory headwinds. A rally in this trading pair from its current low of around 0.03 would be a catalyst for this much-anticipated trend. altseason.
A recent analysis by crypto analyst Carl Runefelt also he foresees big move for ETH at the beginning of the new year. At press time, ETH is trading at $3,345, down 0.7% in the last 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com
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