Ethereum to Outpace Bitcoin in ‘Face Melting Rally’ in Q1: Analysts

Ethereum’s performance in 2024 has been lackluster, with the asset gaining just 47% and failing to hit a new price high or spend much time trading above $4,000.

Meanwhile, Bitcoin surged more than 120% to a new six-figure all-time high in mid-December. However, analysts believe that Ethereum will overtake Bitcoin, which has been consolidating for the past fortnight, in the first quarter of the new year.

“Generally, ETH sees a good amount of action in Q1. Even over the past few years during the downtrend against BTC,” analyst “Daan Crypto Trades” observed on X on January 2nd.

The ETH/BTC ratio needs to improve

During the previous bull market, 2020 and 2021 saw big moves for the ETH/BTC ratio, which also ushered in another season, he said before adding:

“~0.04 remains an important level to break for ETH.”

The ETH/BTC ratio, or the value of Ethereum in terms of Bitcoin, is currently 0.035, according to Tradingview.

$ETH Overall, you see a good amount of action in Q1. Even during the last few years during the downward trend against $BTC.

During the previous bull cycle, 2020 and 2021 saw big moves for the ETH/BTC ratio, which also started an alternate season.

~0.04 is still an important level for… pic.twitter.com/rEjnriL88i

— Daan Crypto Trades (@DaanCrypto) January 1, 2025

Meanwhile, Ethereum Community Advisor Anthony Sassano predicted that ETH would reach $15,000 in 2025.

Much of that boost would come from Ether ETF inflows, which would reach $50 billion this year, as more ETH products in play are applied for and approved, he added.

He also predicted that more TradFi companies and institutions will start building on Ethereum, BlackRock will launch a Layer 2 tokenized real-world asset platform on the blockchain, and several nation states will reveal that they hold ETH as a treasury asset .

“Ethereum will be 10 years old in 2025 and I am very confident that this year will be Ethereum’s most bullish year yet!”

My 2025 Predictions for Ethereum:

– ETH reaches $15,000
– ETH ETF net inflows reached $50 million or more for the year
– Staked ETH ETFs are submitted and approved
– More major TradFi companies/institutions are starting to build with Ethereum
– BlackRock (and Partners) Launches Layer 2 Tokenized RWA Platform…

— sassal.eth/acc (@sassal0x) January 1, 2025

In a report published in late December, Steno Research predicted that ETH prices would reach $8,000 by 2025, with analysts “increasingly optimistic about an impending altcoin season.”

“IMO, ETH will have a rally heading into the first quarter of 2025,” said analyst Ash Crypto, who compared the performance of past cycles.

– ETH DROPPED 52% FROM ITS ATH

– ETH/BTC WAS DOWN CYCLING

– EVERYONE OWETH THIS ETH
SHE’S DEAD

– ETH PUMPED 91% ON JANUARY I
MAKE A NEW ATH

– ETH IS DOWN 30% FROM ITS ATH

– ETH/BTC IS ALMOST AT… pic.twitter.com/ElsocwI8S3

— Ash Crypto (@Ashcryptoreal) December 31, 2024

A great start to 2025

On January 1, Aave founder Stani Kulechov said, “Ethereum is off to a great start in 2025.” He referred to the Pectra update, which will allow accounts to function as smart contracts, “making smart wallets scalable and bringing better UX and security for users.”

ETH prices are currently up 2% on the day, with the asset topping $3,400 during Thursday morning trading in Asia.

However, the asset has traded sideways since the Dec. 20 drop from $4,000. Ether remains 30% below its November 2021 all-time high and only managed to reach 20% of that peak briefly in 2024.

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