While 2024 wasn't particularly stellar for ethereum (eth) in terms of price action, 2025 could finally bring some much-needed optimism for eth bulls. Several analysts believe that eth is on the verge of a massive breakout that could see the cryptocurrency set new all-time highs (ATH).
Has ethereum's time finally come?
ethereum, the second-largest cryptocurrency by market capitalization, may finally eclipse its peers this year. According to crypto analyst Jelle, eth has been trading within a long-term bull pennant for three years and recently took advantage of all the available downside liquidity.
the analyst <a target="_blank" href="https://x.com/CryptoJelleNL/status/1880239902102532146″ target=”_blank” rel=”noopener nofollow”>emphasized that the time for the eth explosion is approaching, anticipating an “old-fashioned eth rally.” Jelle hinted that eth would enter five-figure territory, suggesting a minimum price target of $10,000.
Similarly, cryptocurrency and forex trader Merlijn The Trader shared an optimistic outlook. The trader highlighted the performance of eth against bitcoin (btc), showing it following an ascending triangle pattern. A decisive break above the 0.15 btc level could finally trigger the long-awaited alt season. Merlijn noted:
eth is set to skyrocket to $8,000. The setup is clear and the next ethereum breakout is inevitable.
Another cryptocurrency enthusiast, BitcoinHabebe, <a target="_blank" href="https://x.com/Bitcoinhabebe/status/1880230502898233602″ target=”_blank” rel=”noopener nofollow”>shared your perspective on eth price action. According to them, eth is trading in a falling and widening wedge on the weekly period. A clean break above the upper trendline of this pattern could take eth to $5,000.
Meanwhile, experienced crypto market commentator Ali Martínez presented a thesis on the potential eth price trajectory for the first quarter of 2025. Martínez noted a bullish An inverse head and shoulders pattern forms on the daily chart.
According to Martinez, eth consolidated for about 37 days around the $2,800 price level in April 2024 before moving higher. The analyst expects a similar period of consolidation as eth forms the right shoulder of this pattern, with a breakout likely in mid-February.
Are whales losing faith in eth?
While these price projections present a bullish outlook for eth, some analysts remain cautious about the cryptocurrency's ability to generate extraordinary profits in the short term. Chain data suggests that certain crypto whales are reducing their eth holdings due to its disappointing price performance compared to other cryptocurrencies such as XRP, SUI, and Solana (SOL).
However, cryptocurrency exchange-traded funds (ETF) data indicates that institutional capital may finally be rotating from btc to eth. Sustained capital inflows into eth could help pave the way for the peak season. At the time of publishing, eth is trading at $3,433, up 2.9% in the last 24 hours.
Featured image from Unsplash.com, x charts and TradingView.com
