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ethereum, which has seen a significant increase in long-term holders in 2024, could rise as high as $6,000 in the first quarter of 2025, according to analysts.
On December 29th <a target="_blank" href="https://x.com/CryptoBullet1/status/1873354761719996887″ target=”_blank” rel=”nofollow”>mailCryptoBullet, which has over 152,000 followers, noted that ethereum is in the process of forming a bullish pennant pattern on the eth/USDT 1-day chart. Expect this pattern to complete in the coming months, which could lead to a massive rise to $6,000 in the first quarter of 2025.
In technical analysis, a bullish pennant pattern forms after an asset experiences an uptrend and usually indicates a possible continuation of the rally.
The analyst recalled the price action seen in May 2021, when eth surpassed $4,000 for the first time after breaking a similar pattern in the first quarter of that year.
Analyst James CryptoGuru <a target="_blank" href="https://x.com/Jamyies/status/1872479005942898703″ target=”_blank” rel=”nofollow”>provided a similar price target for ethereum based on a technical indicator.
He noted that eth has formed a multi-month bullish inverse head and shoulders pattern throughout 2024, which is expected to complete in early 2025. If eth breaks out of this pattern, it could rise as high as $8,100.
Meanwhile, fellow analyst Jelle also <a target="_blank" href="https://x.com/CryptoJelleNL/status/1872545004922843487″ target=”_blank” rel=”nofollow”>anticipates a major breakout for eth, indicating that bitcoin's dominance has unraveled from a multi-year trend. They highlighted that the last time this occurred, the price of eth quadrupled in approximately five months.
The optimistic predictions of these experts align with an increase in the number of long-term holders of eth (those who hold the asset for more than a year), rising from 59% in January to 75% at the end of 2024. For the Conversely, btc long-term holders fell from 70% to 62% during the same period, according to a Dec. 30 x study. <a target="_blank" href="https://x.com/intotheblock/status/1873368615459627377″ target=”_blank” rel=”nofollow”>mail from IntoTheBlock, citing the advantages of their platform <a target="_blank" href="https://app.intotheblock.com/coin/eth/deep-dive?group=ownership&subgroup=all” target=”_blank” rel=”nofollow”>data.
The continued growth of long-term holders could help sustain eth's price rally as the asset heads toward 2025.
Another possible catalyst for a first-quarter ethereum rally lies in its historical performance patterns following years' first quarters marked by a US election and a bitcoin halving cycle. According to data from CoinGlass, the first quarter of 2017 and 2021 were among Ether's best performers, with recorded gains of 518% and 161%, respectively.
Additionally, spot Ether exchange-traded funds have become a major growth driver, witnessing inflows in 22 of the last 24 trading days and amassing more than $2.5 billion, according to <a target="_blank" href="https://sosovalue.com/assets/etf/us-eth-spot” target=”_blank” rel=”nofollow”>data by SoSoValue.
Steady momentum has fueled optimism, with one enthusiastic eth advocate <a target="_blank" rel="nofollow" href="https://x.com/sassal0x/status/1873156871919644696″ target=”_blank”>predicting that Ether ETFs could attract more than $50 billion in net inflows by 2025.
Despite the bullish catalysts, the second-largest cryptocurrency could face some downward pressure due to selling activity among large holders.
According <a target="_blank" href="https://app.intotheblock.com/coin/eth/deep-dive?group=ownership&subgroup=all” target=”_blank” rel=”nofollow”>data Since ITB, the net inflow of whale holders has decreased significantly, going from 220.88 thousand eth, valued at almost $737 million on December 23, to just 14.45 thousand eth valued at almost $48 million on December 28.
The sharp drop in investments in whales indicates a possible loss of confidence in the asset's future earnings among large holders. This trend could influence retail investors, who often follow the moves of these experienced market participants.
At press time, Ether (eth) was up 1%, exchanging hands at $3,413 per coin.
