Ethereum had a disappointing 2024, underperforming against Bitcoin and many top altcoins throughout the year. While BTC rose to novel all-time highs, ETH struggled to regain its bullish momentum, leaving investors questioning its position in the market. However, next year may tell a different story as historical trends suggest that altcoins, including ETH, tend to shine in the year after a halving.
One of Ethereum’s strengths is its growing popularity and solid investor base. According to IntoTheBlock’s key metrics, ETH’s hodler benchmark has outperformed BTC’s, indicating a shift in long-term holding sentiment. This milestone is especially notable as Bitcoin holders recently profited from BTC’s novel highs, reducing their market share.
This energetic could set the stage for ETH to regain dominance and lead a potential alternate season in 2025. As more ETH remains in the hands of committed investors, there is a constrained supply available for trading, which could act as a catalyst for price increases once demand returns.
As Ethereum enters a novel cycle, the market is eagerly watching for signs that could spark its recovery and potential breakout in the coming months. Time will tell whether ETH will be able to capitalize on these indicators, but there is optimism for a better year ahead.
Is Ethereum losing power?
Many analysts and investors are starting to believe Ethereum is heading into a potentially gloomy period after struggling to break yearly highs and continuing to make lower highs. Despite growing optimism about Ethereum’s long-term potential, the lack of bullish price action has left many questioning its near-term prospects.
Ethereum’s price movements have been tender compared to Bitcoin and other altcoins, leading some to speculate that ETH may be heading towards a more complex phase in the market.
Maartunn’s best analyst recently shared valuable insights about Xrevealing that Ethereum’s hodler ratio has exceeded Bitcoin’s. This change is significant because it highlights that more and more investors are holding on to ETH for the long term, especially considering Bitcoin’s recent gains have prompted many holders to capitalize on their profits. This led Maartunn to ask an essential question: Will Ethereum holders follow suit when ETH finally breaks through its previous all-time highs?
While the outlook for 2025 may be good for Ethereum due to its growing popularity and potential for an alternative season, maintaining the current trend comes with risks. If ETH fails to break through its previous ATH and continues its series of lower highs, it could signal a prolonged consolidation phase or an even deeper correction.
Market sentiment and key data will be key in determining whether Ethereum will be able to capitalize on positive trends in the coming year or face a more complex road ahead.
ETH tests liquidity before the next impulse
Ethereum is currently trading at $3,400 after several days of consolidation below the key $3,550 level. The price action appears bearish as ETH failed to hold this level as support, instead continuing to make a series of lower highs. This continuing trend suggests that selling pressure is dominating the market and if ETH does not recover, declines could deepen.
However, there is still hope for Ethereum if it manages to break through the critical resistance level at $3,750. A push above this level would signal a potential trend reversal and could set the stage for a robust rally. If the bulls manage to reclaim $3,750 and hold it as support, ETH will likely see a massive rally, with the potential to hit novel highs in the coming weeks.
In the tiny term, Ethereum’s ability to break and stay above $3,750 will be crucial in determining the next major move. If this level is rejected again, ETH may continue its downtrend and face deeper corrections. Therefore, investors and analysts will be closely watching for any signs of a breakout to confirm Ethereum’s next price direction.
Featured image from Dall-E, chart from TradingView
