Despite rising more than 65% year-to-date (YTD), ethereum (eth) has been overshadowed by bitcoin (btc) and other cryptocurrencies like Solana (SOL) and XRP due to its extraordinary price gains over the years. throughout 2024.
Analysts are increasingly bullish in eth, projecting five-figure price targets for the second-largest cryptocurrency.
Will ethereum finally have its moment?
The leading smart contract platform has had a relatively modest performance in 2024. eth was trading at $2,350 on January 1, with the price slightly above $3,800, representing gains of more than 65%.
However, a 65% annual increase is often considered average in the crypto industry, particularly during a bull market. Now, crypto analysts are increasingly suggesting that eth's breakout moment could finally be approaching.
For example, prominent cryptocurrency analyst and trader @CryptoKaleo on Furthermore, the analyst <a target="_blank" href="https://x.com/CryptoKaleo/status/1867395621155492206/photo/1″ target=”_blank” rel=”noopener nofollow”>provided that the eth/btc trading ratio could rise to 0.1 in January 2025.
For context, the eth/btc trading pair, commonly called the eth/btc ratio, measures the performance of eth relative to btc. A higher ratio indicates that eth outperforms bitcoin, while a lower ratio suggests the opposite.
If you look at the weekly chart below, eth has been in a prolonged downtrend against btc since at least September 2022. However, the pair now sits at a multi-year support level around 0.038 and is expected to break even. recover against btc in the coming weeks.
On a shorter time frame, crypto observer @TheLongInvestor noted that eth has climbed back above the upper trend line of a symmetrical triangle formation on the daily chart. The analyst suggested that a break above $4,100 could pave the way for eth to challenge its all-time high (ATH) of $4,865.
eth funding rates return to neutral levels
Another interesting observation comes from the cryptanalyst Byzantine General, who <a target="_blank" href="https://x.com/ByzGeneral/status/1867534965442818103″ target=”_blank” rel=”noopener nofollow”>highlighted that despite eth's constant upward price movement, its futures basis and perpetual swap funding rates have been restored to neutral levels.
In other words, the market does not seem to be overly speculative or leveraged in favor of long positions, even though the price of eth has been rising steadily. This reset could signal healthier market conditions and the possibility of further bullish movement, without the risk of excessive leverage triggering volatility.
Besides bullish chart patterns, eth fundamentals are strengthening. A recent report pointed out an important increase in ethereum's net staking inflows, further strengthening its long-term value proposition. At press time, eth is trading at $3,925, down 0.8% in the last 24 hours.
Featured image from Unsplash.com, x charts and TradingView.com
