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ethereum (eth), the second-largest cryptocurrency by market cap, may finally seize its momentum in the first quarter of 2025. crypto experts have taken to x to share their analysis of a potentially bullish start to the year for eth.
Bullish ethereum Price Action in Q1 2025?
Although ethereum is up almost 43% year to date (YTD), its performance pales compared to bitcoin (btc), which has appreciated over 115% in the same period. Additionally, several alternative Layer 1 blockchains, such as Solana (SOL) and SUI, have vastly outperformed eth throughout 2024.
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However, momentum could soon shift in eth's favor as experts suggest that the first quarter of 2025 could mark a bullish phase for the world's leading smart contract platform. According to crypto analyst crypto Bullet, eth appears to be <a target="_blank" href="https://x.com/CryptoBullet1/status/1873354761719996887″ target=”_blank” rel=”nofollow”>forming a bullish pennant on the daily chart, with a possible breakout to $6,000 expected by March 2025.
Similarly, cryptocurrency expert Anup Dhungana <a target="_blank" href="https://x.com/CryptoAnup/status/1873621782793785538″ target=”_blank” rel=”nofollow”>highlighted Another bullish pattern is forming on the weekly chart. It pointed to an inverse head and shoulders pattern, a widely recognized bullish indicator that suggests an imminent price rise.
According to Dhungana's analysis, eth could shoot up to $8,000 by May 2025. However, he also warned that the digital asset may first experience a drop to $2,800 before reaching new all-time highs (ATH).
Veteran crypto analyst Quinten Francois also shared an interesting perspective. He noted that eth has historically posted exceptional gains during the first quarter of the year following the US presidential election. If this historical pattern holds, the first quarter of 2025 could be extraordinarily bullish for ethereum.
Bet on eth to create a supply crisis?
Additionally, Galaxy Research <a target="_blank" href="https://x.com/glxyresearch/status/1872696362468295156″ target=”_blank” rel=”nofollow”>shared Some ethereum price predictions for 2025 say the digital asset will trade above $5,500 in 2025 due to potentially favorable regulations around staking and decentralized finance (DeFi).
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Galaxy Research also projected that ethereum betting The interest rate will exceed 50%, creating a supply crisis that could trigger a sharp price increase. The firm explained:
The Trump administration is likely to offer greater regulatory clarity and guidance for the crypto industry in the US. Among other outcomes, spot-based eth ETPs will likely be allowed to stake some percentage of the eth that they own on behalf of the shareholders. Staking demand will continue to rise next year and will likely surpass half of ethereum's circulating supply by the end of 2025, prompting ethereum developers to more seriously consider changes to the network's monetary policy.
Furthermore, Galaxy Research suggested that the eth/btc trading pair will close 2025 trading above 0.06, driven by anticipated regulatory tailwinds. A rise in this trading pair from its current lows of around 0.03 could serve as a catalyst for the long-awaited peak season.
Recent analysis by cryptanalyst Carl Runefelt as well foresees a big move for eth at the start of the new year. At press time, eth is trading at $3,345, down 0.7% in the last 24 hours.
Featured image from Unsplash, x Charts and TradingView.com
