Analyst Forecast ‘Highly Bullish’ 2025 For Ethereum: Is The Bleeding Over?

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull and bear markets. Having closely followed Ethereum since its inception, I must say that the current situation presents an interesting case study.

After dropping to the $3,100 support point a week ago, Ethereum (ETH) has begun to ascend certain levels. The second-largest cryptocurrency is making an effort to break free from its recent slump, with some analysts predicting it could experience a significant surge in 2025.

Ethereum Key Levels To Reclaim

As we approach New Year’s Eve in 2024, many financial experts are already speculating about how the cryptocurrency market will fare in the upcoming year. Even with some recent downturns, various analysts anticipate outstanding growth for Ethereum in 2025.

The King of Altcoins has struggled to turn the $4,000 level into support. After breaking past this level earlier this month, ETH has been rejected from this price range three times. Its latest attempt occurred a week ago when Ethereum soared to $4,100 before retracing 7.3%.

When Bitcoin dropped to around $92,000, the second largest cryptocurrency plunged further towards the $3,100 support level, reaching its lowest point in a month. After that, Ethereum has been fluctuating between roughly $3,200 and $3,550, but for the past four days, it hasn’t managed to break through the higher end of this price range.

Nevertheless, the cryptocurrency has burst free from its previous downward trend line and is making an effort to recover the $3,500 support level. A crypto expert observed that ETH seems to have shattered and re-tested its one-week descending trend following its successful retaking of the $3,400 support.

As per the article, a clear upward shift in this downtrend might cause the cryptocurrency to revisit higher prices. Ali Martinez pointed out that Ethereum’s significant support area lies within the $3,032 and $3,132 price band, where approximately 4.85 million ETH were purchased by around 3.69 million different wallets.

Currently, a significant resistance level for Ethereum is situated between $3,640 and $3,740. This range marks an area where approximately 2 million investors purchased around 4.3 million Ether. According to Martinez, if Ethereum manages to consistently close above this price range, it will provide insight into the direction of its future trend.

Will ETH Follow 2021’s Performance?

According to analyst Ted Pillows’ observations, the initial four months following U.S. elections tend to be favorable for Ethereum (ETH), as evidenced by substantial growth in ETH during the first third of the year after both the 2016 and 2020 presidential elections.

2017 and 2021 saw remarkable growth for Ethereum. In the initial month of each year, ETH experienced a 31.92% rise in January 2017, while it skyrocketed by 78.51% at the start of 2021. Throughout March and April, both years witnessed peak monthly gains for Ethereum, with returns amounting to 214% and 44%, respectively, during those periods.

If Ethereum follows its past trend, it might exceed its previous record high of $4,878, which was set in January, and potentially keep rising throughout the first quarter.

The experienced crypto trader known as Immortal observed that Ethereum’s current price trend mirrors its price movement from 2020 to early 2021. As the graph shows, ETH experienced a substantial increase at the beginning of 2021 followed by a period of consolidation in a new range. This was then followed by a breakout and a significant drop that led it back to test the consolidation zone again.

As I delved into my analysis during 2021, it was evident when Ethereum (ETH) reclaimed its breakout levels that the cryptocurrency’s momentum didn’t wane. Instead, it surged forward, aiming for its previous all-time high (ATH) of $4,300. Remarkably, ETH managed to achieve a new ATH by the year’s end.

The trader observes that after last week’s downturn, ETH is once more testing its previous holding pattern, suggesting it might surge in the near future if it follows a similar trend. At present, Ethereum is being traded at $3,501, representing a 6.3% rise over the past day.

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2024-12-25 03:40