Ethereum (ETH) joined Bitcoin (BTC) in a significant price recovery, managing to regain the $3,000 mark. This resurgence could mark a pivotal moment for the altcoin, suggesting a potential modern uptrend. However, investors remain divided on whether ETH could face further declines or whether a year-end rebound could spark bullish sentiment again.
December ETH competition
To predict Ethereum’s likely moves in December, Alex Carchidi, an analyst at The Motley Fool, notes that this month has traditionally been a arduous month for cryptocurrency. Since 2016, Ethereum has ended December higher than it started in four of the nine years studied.
In the remaining five cases, the month ended in negative territory. The average December return over this period is around 7%, indicating that a powerful “Santa Claus rally” is unlikely. The median results show a decline of 6%.
Examining the relationship between November and December reveals a more intriguing pattern. In 2016-2024, when November was faint ETHin December they often followed suit, with declines observed in three of the four cases.
The only exception was 2018, when Ethereum rebounded in December after a particularly keen crisis in November. This historical context suggests that impoverished performance in November could carry over into December, reducing the likelihood of a successful month.
However, while December results have been mixed in the past, the beginning of the year has typically shown powerful potential for Ethereum’s price, especially in the first and second quarters.
In fact, average profits typically peaks in the first quarter at around 77% and in the second quarter at around 64%, indicating that there could still be significant growth for the leading altcoin in the future.
Tom Lee predicts Ethereum will rise to $7,000
In this hypothetical scenario, Tom Lee, president of BitMine Immersion Technologies and a key industry advocate, predicts a vivid future for Ethereum in the near and long term.
The executive believes that the cryptocurrency could surge to $7,000 per coin in the first quarter of 2026, reflecting a price boost of almost 150% from its current value.
Lee is even more positive about the long term, predicting that if his vision decentralized financial system materializes, Ethereum’s price could boost by 2,090% to reach $62,000 by 2035.
After a arduous year in which ETH significantly underperformed other cryptocurrencies, it has shown increased resilience, especially after the recent collapse in cryptocurrency prices that saw the token’s valuation drop to $2,600 last Friday.
ETH is currently trading just above $3,000. While this isn’t bullish enough to outpace the recent crash, ETH is poised to rebound significantly if demand and capital flows back into ETFs towards the end of the year.
Featured image from DALL-E, chart from TradingView.com
