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Bitcoin vs. Ethereum: Year-to-Date Performance
As we approach the new year, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is under the spotlight. Despite a year-to-date (YTD) increase of almost 43%, Ethereum’s performance trails behind Bitcoin (BTC), which has seen a remarkable appreciation of over 115% in the same timeframe. Furthermore, alternative Layer-1 blockchains such as Solana (SOL) and SUI have outperformed ETH throughout 2024. However, analysts anticipate a potential shift in momentum as we step into Q1 2025.
Ethereum Bullish Price Action In Q1 2025?
Crypto experts are optimistic about Ethereum’s prospects in Q1 2025, predicting a bullish phase for the leading smart contract platform. Renowned crypto analyst Crypto Bullet has highlighted a bullish pennant formation on the daily chart, suggesting a potential breakout to $6,000 by March 2025. This analysis is echoed by another expert, Anup Dhungana, who identified an inverse head-and-shoulders pattern on the weekly chart, a classic bullish indicator that points to an impending price surge.
Potential Price Projections
According to Dhungana, Ethereum could see prices soar as high as $8,000 by May 2025. However, he also cautioned about a possible initial dip to $2,800 before reaching new all-time highs (ATH). Meanwhile, veteran crypto analyst Quinten Francois provided an intriguing perspective, noting that Ethereum has historically recorded significant gains during the first quarter following a US presidential election. If this pattern continues, Q1 2025 could be a period of exceptional growth for Ethereum.
ETH Staking To Create Supply Crunch?
In addition to technical analysis, other factors may drive Ethereum’s bullish momentum. Galaxy Research has shared optimistic price predictions for Ethereum as we head into 2025. The research firm projects that Ethereum will trade above $5,500, potentially driven by favorable regulations surrounding staking and decentralized finance (DeFi).
Impact of Staking on Ethereum’s Supply
Galaxy Research anticipates that Ethereum’s staking rate will exceed 50%, creating a supply crunch that could trigger a sharp price increase. The firm explained that the Trump administration might provide greater regulatory clarity for the crypto industry in the U.S., including the possibility of spot-based ETH ETPs being allowed to stake a percentage of ETH on behalf of shareholders. As demand for staking continues to rise, it could significantly impact Ethereum’s circulating supply by the end of 2025, prompting developers to consider changes to the network’s monetary policy.
Looking Ahead: Ethereum’s Trading Pair Prospects
Furthermore, Galaxy Research suggested that the ETH/BTC trading pair could close 2025 trading above 0.06, supported by anticipated regulatory tailwinds. A rise from its current lows of approximately 0.03 could catalyze the much-awaited altseason. Crypto analyst Carl Runefelt also foresees a significant move for ETH at the beginning of the new year. At the time of writing, ETH trades at $3,345, reflecting a slight decrease of 0.7% in the past 24 hours.
