Ethereum had a disappointing 2024, underperforming Bitcoin and many leading altcoins throughout the year. While BTC reached new all-time highs, ETH struggled to regain its bullish momentum, leaving investors questioning its position in the market. However, next year might tell a different story, as historical trends suggest that altcoins, including ETH, tend to shine in the year following the halving.
One of Ethereum’s strengths is its growing adoption and strong investor base. According to key indicators from IntoTheBlock, ETH’s hodler ratio has surpassed that of BTC, indicating a change in long-term holding sentiment. This milestone is particularly noteworthy as Bitcoin holders have recently taken profits following BTC’s new highs, reducing their stake in the market.
This dynamic could set the stage for ETH to regain its dominance and lead a potential new season in 2025. With more ETH held by committed investors, the supply available for trading is limited, which could serve as a catalyst to price appreciation once demand returns.
As Ethereum enters a new cycle, the market is eagerly watching for signals that could support its recovery and possible breakthrough in the coming months. It remains to be seen whether ETH will be able to capitalize on these measures, but optimism for a better year ahead is growing.
Is Ethereum losing power?
Many analysts and investors are beginning to believe that Ethereum is approaching a potentially dark period after struggling to surpass its yearly highs and continuing to make lower highs. Despite the growing optimism surrounding Ethereum’s long-term potential, the lack of bullish price action has left many wondering about its near-term prospects.
Ethereum’s price movements have been lackluster compared to those of Bitcoin and other altcoins, leading some to speculate that ETH could be heading for a rougher phase in the market.
Analyst Maartunn recently shared valuable insights on X, revealing that Ethereum’s hodler ratio has surpassed that of Bitcoin. This change is important because it highlights that more and more investors are holding on to ETH for the long term, especially with Bitcoin’s recent profits prompting many holders to take their gains. This led Maartunn to ask an important question: could Ethereum hodlers follow suit when ETH finally breaks its previous all-time highs?
Although the outlook for 2025 could be promising for Ethereum, with its growing adoption and the possibility of a new season, there is risk in maintaining the current trend. If ETH fails to surpass its previous ATH and continues its trend to lower highs, this could signal a more prolonged consolidation phase or even a deeper correction.
Market sentiment and key data will be key in determining whether Ethereum can capitalize on positive trends in the coming year or face a tougher road ahead.
ETH tests liquidity ahead of next surge
Ethereum is currently trading at $3,400 after several days of consolidation below the key $3,550 level. Price action appears bearish as ETH failed to hold this level as support, instead continuing to form a series of lower highs. This continued trend suggests that selling pressure is dominating the market and unless ETH manages to regain strength, the decline could extend further.
However, there is still hope for Ethereum if it manages to surpass the critical resistance level of $3,750. A push above this mark would signal a potential reversal and could pave the way for a strong rally. If bulls manage to reclaim $3,750 and hold it as support, ETH will likely see a massive surge, with the potential to reach new highs in the coming weeks.
In the near term, Ethereum’s ability to move above $3,750 will be crucial in determining the next major move. If this level is rejected again, ETH could continue its downtrend and face deeper corrections. Therefore, investors and analysts will closely monitor any signs of a breakout in order to confirm Ethereum’s next price direction.
Featured image of Dall-E, chart by TradingView
