Ethereum’s performance in 2024 was disappointing, as it underperformed Bitcoin and other top altcoins. BTC soared up to new record highs while ETH struggled with regaining its bullish trend, which left investors questioning the position of ETH in the market. The next year may be different, since historical trends indicate that altcoins such as ETH are more likely to thrive after a halving.
Ethereum’s strength lies in its solid investor base, which is growing. According to key metrics provided by IntoTheBlock ETH’s hodler rate has surpassed BTC, indicating a change in sentiment towards long-term holdings. This milestone has particular significance as Bitcoin holders took profits recently following BTC’s new highs. They reduced their stakes in the market.
This could lead to ETH becoming a mainstream currency. reclaim dominance and lead a potential altseason in 2025. The supply of ETH is now limited due to more committed investors holding ETH. This could lead to a price increase once the demand for ETH returns.
The market is eagerly watching for signs that will drive Ethereum’s recovery and possible breakout in the months to come. Whether ETH is able to capitalize on these metrics will remain to be seen. However, optimism for a better year ahead is growing.
Ethereum: Is it losing its Power?
Many analysts and traders are beginning to believe that Ethereum may be approaching a potentially dark time after struggling to reach its annual highs and setting lower highs. The lack of positive price movement has many doubting the near-term prospects for Ethereum despite the increasing optimism about its long-term potential.
Ethereum’s price movement has been lackluster compared with Bitcoin and other altcoins. This has led some to speculate that ETH may be headed for a more difficult phase in the market.
Maartunn, top analyst recently shared valuable insights on X, revealing Ethereum’s hodler’s ratio has surpassed Bitcoin. This is a major shift as it indicates that more investors have decided to hold onto ETH over the long-term, particularly after Bitcoin’s recent profits prompted many holders to withdraw their gains. Maartunn has asked an important question. Could Ethereum hodlers be tempted to follow suit if ETH breaks through its previous highs?
Although the outlook for Ethereum in 2025 is bright, given its growing adoption, and the possibility of an altseason, maintaining the current trend could pose a risk. If ETH does not break through its previous ATH, and instead continues to make lower highs in the future, this could indicate a longer consolidation phase or a deeper correction.
Market sentiment and key data will be crucial in determining if Ethereum can capitalize on positive trends or face a tougher road in the next year.
Test the liquidity of ETH before the next push
Ethereum currently trades at $3,400 following several days of consolidation beneath the $3,550 threshold. ETH’s price has been falling, since it failed to maintain this support level, and instead formed a series lower highs. This current trend suggests that there is a lot of selling pressure on the market. If ETH cannot regain strength then the downside may extend.
Ethereum can still be a viable option if the price is able to break through the $3,750 barrier. This mark could signal a potential turn around and set the stage for an explosive rally. If bulls are able to reclaim the $3,750 mark and hold it, ETH will likely see a massive rise, with the possibility of reaching new highs within the next few weeks.
Ethereum’s short-term ability to hold and break above $3,750 is crucial in determining its next major move. If this level was rejected again, ETH’s bearish trend could continue and ETH would face further corrections. Investors and analysts will therefore be watching closely for any signs that confirm the direction of Ethereum’s future price.
Chart from TradingView, Featured Image from Dall-E
