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Ethereum started the fresh year with a forceful performance, rising over 9% in just a few days. This rally brought renewed optimism to the market, particularly among analysts and investors who were concerned about Ethereum’s continued underperformance compared to Bitcoin. ETH has struggled to maintain momentum in recent months, leaving many people questioning its short-term potential.
However, top analyst Daan recently shared an insightful chart that changed the narrative. According to Daan, Ethereum has historically shown significant activity in the first quarter of the year, even during periods when it lagged Bitcoin. This trend highlights Ethereum’s potential to rebound once market dynamics shift in its favor.
While Ethereum’s price action is gaining momentum, the next few weeks will be crucial. Investors are closely watching whether ETH can maintain this momentum and regain dominance in the altcoin space. The overall market sentiment suggests that 2025 could be a pivotal year for Ethereum, with the first quarter trend potentially setting the tone for an impressive outlook.
The beginning of the year in Ethereum is bullish
Ethereum has started 2025 on an bullish note, and investors and analysts are closely watching whether this momentum can continue. While it has had a forceful start to the year, Ethereum’s performance will need to break away from previous trends of underperformance relative to Bitcoin to truly thrive in the coming months.
Daan’s best analyst recently shared a detailed analysis of the ETH/BTC ratio on Xhighlighting the historic significance of the first quarter for Ethereum. According to Daan, during this period Ethereum often experienced significant activity, even in years when it lagged behind Bitcoin.
During the previous bull cycle in 2020 and 2021, the ETH/BTC ratio experienced significant increases that coincided with the start of the alternate season. This historical data suggests Ethereum’s first-quarter performance could set the tone for broader market activity.
For Ethereum to build on this promising start, the ~0.04 level in the ETH/BTC ratio represents a critical resistance point. A decisive break above this level could reignite investor confidence and potentially lead to significant gains. However, failure to maintain momentum or break above key levels could result in Ethereum continuing its broader trend of relative underperformance.
The coming weeks will be crucial. If Ethereum can build on this first-quarter strength and cross critical thresholds, 2025 could be a special year for the leading altcoin.
ETH testing critical zone
Ethereum is trading at $3,595 after hitting a high of $3,629 yesterday, testing a critical level that could determine its near-term direction. The price has shown resilience by bouncing back from December’s decline, but bulls now face the challenge of breaking through this significant resistance to maintain upward momentum.

This level is a key moment for Ethereum. A break above $3,629 followed by a forceful close could signal the beginning of a rally, potentially setting the stage for a move toward higher targets in the coming weeks. However, the market remains recovering, with trading activity reflecting cautious optimism as investors consider the potential for further upward movement.
Despite these positive prospects, continuing forward may require patience. Consolidation around current levels is possible as the market seeks clarity and momentum. Bulls will need to maintain Ethereum above $3,500 to ensure the bullish structure remains intact.
As the market begins to wake up from the seasonal correction, Ethereum’s performance at these levels will be critical. A decisive move in either direction could set the tone for the altcoin’s trajectory in the coming months, making this a key moment for investors and traders alike.
Featured image from Dall-E, chart from TradingView