ethereum had a disappointing 2024, underperforming bitcoin and many major altcoins throughout the year. As btc soared to new all-time highs, eth struggled to regain its bullish momentum, leaving investors questioning its position in the market. However, next year could tell a different story, as historical trends suggest that altcoins, including eth, tend to shine during the year after the halving.
One of ethereum's strengths lies in its growing adoption and strong investor base. According to key metrics from IntoTheBlock, eth's hodler ratio has surpassed that of btc, indicating a change in long-term holding sentiment. This milestone is particularly notable as bitcoin holders have recently taken profits following btc's new highs, reducing their market share.
This dynamic could set the stage for eth to regain dominance and lead a potential alt-season in 2025. With more eth being held by committed investors, the supply available for trading is limited, which could act as a catalyst for stock appreciation. prices once demand returns.
As ethereum enters a new cycle, the market is eagerly looking for signs that could fuel its recovery and possible breakout in the coming months. It remains to be seen if eth can capitalize on these metrics, but optimism is building for a brighter year ahead.
Is ethereum losing power?
Many analysts and investors are starting to believe that ethereum is heading into a potentially dark period after struggling to break through its yearly highs and continuing to set lower highs. Despite growing optimism surrounding ethereum's long-term potential, the lack of bullish price action has left many questioning its near-term prospects.
ethereum's price movements have been lackluster compared to bitcoin and other altcoins, leading some to speculate that eth could be heading into a more challenging phase in the market.
Top analyst Maartunn recently <a target="_blank" href="https://x.com/JA_Maartun/status/1872227809361612841″ target=”_blank” rel=”noopener nofollow”>shared valuable insights about xrevealing that ethereum's hodler ratio has surpassed that of bitcoin. This change is significant as it highlights that more investors are holding on to eth for the long term, especially as bitcoin's recent gains have led many holders to take their profits. This has led Maartunn to ask an important question: Could ethereum hodlers do the same when eth finally surpasses its previous all-time highs?
While the outlook for 2025 could be bright for ethereum, with its growing adoption and the possibility of an altseason, there is a risk in maintaining the current trend. If eth fails to break above its previous ATH and continues its pattern of lower highs, it could indicate a longer consolidation phase or even a deeper correction.
Market sentiment and key data will be critical in determining whether ethereum can capitalize on next year's positive trends or face a more challenging path ahead.
eth tests liquidity ahead of next push
ethereum is currently trading at $3,400 after several days of consolidation below the key $3,550 level. The price action appears bearish as eth has failed to hold this level as support but instead continues to form a series of lower highs. This current trend suggests that selling pressure is dominating the market and unless eth manages to regain strength, the decline could extend further.
However, there is still hope for ethereum if it can break through the critical $3,750 resistance level. Momentum above this mark would indicate a possible reversal and could set the stage for a strong rally. If the bulls can recapture $3,750 and hold it as support, eth is likely to see a massive rally, with the potential to hit new highs in the coming weeks.
In the short term, ethereum's ability to break and sustain above $3,750 will be crucial in determining the next major move. If this level is rejected once again, eth could continue its downtrend and face deeper corrections. Therefore, investors and analysts will be on the lookout for any breakout signals to confirm the next direction of ethereum price.
Featured image of Dall-E, TradingView chart
