Stay up to date with the CriptoTendencia WhatsApp channel: Instant news about Bitcoin, Altcoins, DeFi, NFT, Blockchain and Metaverse. Subscribe!
Ethereum (ETH), the second largest asset by market capitalization, could be on the verge of setting a new all-time high in the first quarter of 2025, according to recent analysis. Although Bitcoin has grabbed much of the attention with its astonishing rally topping $100,000 on December 6, everything indicates that Ethereum is positioned to follow suit in this Cryptocurrency bull cycle.
The key is in the critical level of $4,100
Currently, the price of Ethereum is struggling to consolidate around $4,000, a level that has been difficult to surpass in recent months. However, analysts note that a successful break above $4,100 could trigger significant momentum. This move would open the doors for Ethereum to not only reach its previous all-time high of $4,865, but aim for higher levels.
Some optimistic projections suggest that ETH could trade as high as $8,800 if the market maintains its positive trend.
On the other hand, a more conservative view like VanEck’s places the top of this cycle for Ethereum at $6,000, which still represents a significant gain from current levels.
ETH price evolution in the last year. Source: CoinMarketCap
Bitcoin cycles and their impact on Ethereum
Ethereum’s performance is closely tied to Bitcoin’s halving cycle, as has been the case historically. Generally, Ethereum tends to follow Bitcoin, but with some delay.
Data shows that following a Bitcoin halving, Ethereum typically lags for around eight months before showing an explosive change in price.
Interestingly, now that it has been approximately eight months since the last Bitcoin halving, analysts expect that Ethereum may begin to overtake Bitcoin in performance. Some even point out that the correlation between the two could lead to an ETH/BTC ratio of 0.39, which would represent a massive increase of around 700%.
Significant increase in investor interest
Another key indicator strengthening the bullish predictions is the drastic increase in the creation of new Ethereum wallets. In December alone, more than 130,000 new ETH wallets were registered daily, the highest level in more than eight months. This indicator reflects growing confidence by retail and institutional investors in the long-term potential of Ethereum.
Additionally, the Ethereum derivatives market is showing signs of strength, a factor that could support the price of Ethereum higher as it continues to gain momentum.
Ethereum will lead in the next bull cycle
As a major player within the cryptocurrency industry, Ethereum maintains a unique position thanks to its robust network and smart contract ecosystem, which continues to attract developers and innovators.
With increasing interest from investors, both retail and institutional, and with predictions pointing to new all-time highs, Ethereum looks set to play a central role in the next market cycle.
With the start of 2025 quickly approaching, all eyes are on Ethereum and its ability to finally close the gap with Bitcoin. Are we seeing the beginning of a new historical chapter for Ethereum? Time will tell, but the indicators suggest that we are facing a period of great transformations.
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
