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Ethereum (ETH) – the second largest cryptocurrency by market capitalization – could finally seize its moment in the first quarter of 2025. Crypto experts have taken to X to share their analysis of a potentially bullish start to the new year for ETH.
Ethereum Bullish Price Action in Q1 2025?
Although Ethereum is up nearly 43% year-over-year (YTD), its performance faded compared to Bitcoin (BTC), which has increased in value by more than 115% over the same period. Furthermore, several alternative Layer-1 blockchains, such as Solana (SOL) and SUI, have significantly outperformed ETH in 2024.
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However, momentum may soon shift in ETH’s favor as experts suggest that the first quarter of 2025 could mark a bullish phase for the world’s leading smart contract platform. According to crypto analyst Crypto Bullet, ETH seems to be forms a bullish pennant on the daily chart, with a potential breakout to $6,000 expected in March 2025.
This includes cryptocurrency expert Anup Dhungana marked a bullish pattern is forming again on the weekly chart. He pointed to an inverse head-and-shoulders pattern – a widely recognized bullish indicator that points to an impending price rise.
Based on Dhungana’s analysis, ETH could rise to $8,000 by May 2025. However, he also warned that the digital asset could experience a dip to $2,800 before reaching new all-time highs (ATH).
Experienced crypto analyst Quinten Francois also shared an interesting perspective. He noted that ETH has historically posted exceptional gains during the first quarter of the year following the US presidential election. If this historical pattern holds, the first quarter of 2025 could be extremely bullish for Ethereum.
ETH strike to create supply crisis?
In addition, Galaxy Research shared some price predictions about Ethereum heading into 2025, saying the digital asset will trade above $5,500 in 2025 due to potentially favorable regulations around staking and decentralized finance (DeFi).
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Galaxy Research also predicted that Ethereum’s to expand Interest rates will rise above 50%, creating a supply crisis that could lead to a sharp price increase. The company explained:
The Trump administration is likely to provide more regulatory clarity and guidance for the crypto industry in the US. Among other outcomes, it is likely that spot-based ETH ETPs will be allowed to stake a certain percentage of the ETH they hold on behalf of shareholders. Staking demand will continue to rise next year and is likely to exceed half of Ethereum’s circulating supply by the end of 2025, prompting Ethereum developers to think more seriously about changes to the network’s monetary policy.
Moreover, Galaxy Research suggested that the ETH/BTC trading pair will close trading above 0.06 in 2025, buoyed by expected tailwinds from regulators. A rise in this trading pair from the current low of around 0.03 could serve as a catalyst for the long-awaited one high season.
Recent analysis from crypto analyst Carl Runefelt also provides a big step for ETH at the start of the new year. At the time of writing, ETH is trading at $3,345, down 0.7% in the last 24 hours.
Featured image from Unsplash, charts from X and TradingView.com
