Market analysts predict that Ether (ETH) may surpass its previous all-time high during the first quarter of 2025. Despite Bitcoin’s (BTC) record-breaking price surge to $100,000 on December 6, Ether has struggled to remain above the key $4,000 psychological threshold.
Leverage Reduction Sets Stage for ETH Rally
The recent crypto market deleveraging is a strong indication of a reset in leveraged long exposure. Bybit and Block Scholes’ market report highlights that reduced leverage could set Ether up for a rally to a new all-time high during the first quarter of next year.
Analysts Expect New All-Time High in Q1 2025
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."
ETH, BTC Price Comparison
However, Bitcoin has proven itself to be a more lucrative investment product for 2024. Over the past six months, Bitcoin rose over 54%, while Ether only generated a 12% return on investment, Cointelegraph data shows.
| Asset | 6-Month Return |
| — | — |
| ETH | 12% |
| BTC | 54% |
Ascending Triangle Formation Suggests $8,800 Price Target
Ether may be setting up for a rally to above $8,800 based on an ascending triangle formation on the daily chart. This technical chart formation is used to spot the continuation of an uptrend.
However, Ether needs to cross the key $4,100 resistance level first, according to popular crypto analyst the Long Investor. "A break above $4,100 next, and this could run to the ATH level at $4,865. I am holding $ETH until $8,800," the analyst wrote on X.
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. In an Xpost, popular crypto analyst Venture Founder said: "Every cycle, following the Bitcoin halving, Ethereum underperformed BTC for no more than 8 months until it explodes against BTC."
ETH/BTC Ratio Since Halving
They added: "We are in the 8th month now. Right on track. Then ETH/BTC Ratio since halving goes to no less than 700% after, which for this cycle means ETH/BTC = 0.39"
| Timeframe | ETH/BTC Ratio |
| — | — |
| Post-Halving | 700%+ |
Growing Investor Interest in Ether
Another signal showcasing the growing investor interest in Ether is 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, according to market intelligence platform Santiment.
| Date | Daily Average New Wallets Created |
| — | — |
| Dec 2024 | 130,000+ |
| Apr 2024 | 130,000+ |
Conservative Price Targets
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
The current market dynamics suggest that Ether may be setting up for a rally to above $8,800 in the first quarter of 2025. With growing investor interest and historic correlation with the Bitcoin halving cycle, ETH could start eclipsing more of Bitcoin’s momentum. However, it is essential to note that conservative price targets are also being predicted by established market participants.
References:
- Bybit and Block Scholes’ Market Report
- Cointelegraph Data
- The Long Investor’s Xpost
- Venture Founder’s Xpost
- Santiment’s Market Intelligence Platform