After a lackluster 2024, ethereum started 2025 with a bang, rising over 13% since the year began. This impressive performance has reignited optimism among investors anticipating a bullish year for eth and the broader altcoin market. ethereum's initial strength has raised the critical question: Can it outperform bitcoin in this post-halving year?
Top analyst Daan recently shared insightful data highlighting eth's early lead over btc, driven by positive sentiment and historical patterns of strong seasonality. In his analysis, Daan noted that eth often performs well during the first quarter, particularly in the years after the halving, setting the stage for a possible alternate season. This historical trend has many investors considering eth as a promising candidate to dominate the market in 2025.
While bitcoin remains the market leader, ethereum's early momentum could pave the way for it to challenge btc's dominance this year. The combination of favorable market conditions, improving sentiment, and ethereum's strong start suggests that the altcoin leader is ready to regain its position as a high-performing asset. As the market prepares for what could be a historic year, all eyes are on eth to see if it can maintain its momentum and eclipse bitcoin.
ethereum shows strength but faces key challenges
ethereum has entered the new year on a bullish note, generating optimism among analysts and investors alike. However, for eth to confirm a sustained uptrend, it must recapture and maintain last year's highs. The early signs are promising: eth shows a 13% gain since the beginning of the year. The post-halving years are historically favorable for altcoins, and 2025 appears to follow the trend.
The best analyst Daan <a target="_blank" href="https://x.com/DaanCrypto/status/1876539770635264133/photo/1″ target=”_blank” rel=”noopener nofollow”>shared revealing data about xhighlighting ethereum's strong start compared to bitcoin. He noted that eth is taking an early lead against btc, supported by positive sentiment and strong seasonal patterns. Historically, eth has performed well in the first quarter of post-halving years, setting the stage for a possible alternate season. This historical context gives investors confidence that ethereum could outperform in the coming months.
Daan emphasized that while ethereum is gaining momentum, the race between eth and btc will be one to watch closely. He believes both assets will emerge winners this year and each will offer unique growth opportunities. For eth, reclaiming key levels and maintaining its initial momentum is critical to ensuring it lives up to these high expectations.
The next few weeks will be crucial as eth looks to capitalize on its early lead. With market conditions looking favorable and a track record of strong first-quarter performance, ethereum is positioned for a potentially game-changing 2025. However, it will need to weather market challenges and demonstrate resilience to sustain the bullish outlook.
Key eth Testing Support
ethereum is currently trading at $3,636, testing the critical 200 4-hour moving average as support. This level is crucial in determining the next phase of eth price action. If the price remains above this moving average in the coming hours, it could indicate a solid foundation for a bounce towards areas of greater supply, setting the stage for further bullish momentum.
However, a brief deviation towards areas of lower supply could still be a healthy move for eth. If such a drop occurs, it is essential that the price recovers quickly (ideally within a few days) to maintain the bullish outlook. A sustained decline could create uncertainty and test investors' confidence in ethereum's upward trajectory.
For the uptrend to remain intact, eth must remain firmly above the $3,500 level. This mark serves as a critical support zone and losing it would risk deeper corrections. On the other hand, reclaiming the $3,900 level is equally important as it would reinforce the bullish structure and open the door for a larger rally.
Featured image of Dall-E, TradingView chart
