As the crypto market continues to evolve, analysts are weighing in on the potential performance of Ethereum (ETH) in 2025. According to Markus Thielen, head of research at 10x Research, Ether may not be the wisest investment choice for a bull run next year.
Underwhelming Returns Ahead?
Thielen’s comments come as ETH has struggled to keep pace with Bitcoin’s (BTC) impressive gains in recent months. While BTC is up 121.4% since January 1, 2024, Ether has only clocked a 46.3% return over the same period, according to CoinMarketCap data.
Demand for Ether: A Concern
Thielen attributes ETH’s underperformance to a lack of real demand outside of staking. He notes that Ethereum lacks a unified value proposition and refined marketing efforts are needed to increase investor interest.
However, not everyone shares Thielen’s pessimistic view on Ethereum’s prospects. Attestant’s chief business officer, Tim Lowe, recently told Cointelegraph that demand for Ether can easily increase with the right strategy in place.
Diversification: A Catalyst for Growth
Lowe sees diversification from Bitcoin as a simple catalyst for Ethereum growth. He notes that investors are looking for alternative assets and Ethereum’s price is likely to benefit from increased adoption.
Upgrades: A Mixed Bag
Thielen also expressed skepticism about the potential impact of upcoming upgrades on Ethereum’s performance. The Duncan upgrade, which reduced gas fees and improved transaction capacity, arrived six months too late to capitalize on the memecoin rally.
Additionally, Thielen is unsure about the Pectra upgrade, due to be introduced in early 2025. He notes that only two out of 19 upgrades have had a notable positive impact on price, and even those occurred during Bitcoin bull markets.
Ether’s Price: A Rangebound Market
Pseudonymous crypto trader Cold Blooded Schiller believes Ether has been rangebound since December 25, with one of two scenarios likely to play out. Either Ether will stage a "sweep and run" to the upside, triggering a price breakout, or it could break down to the December 20 range low, potentially retesting the $3,000 level.
Other Analysts Weigh In
Echoing a similar scenario, pseudonymous crypto trader Dal said Ether could go in one of two directions: either it breaks through the $3,554 level and returns to the $4,000 mark or it sweeps the $3,102 level.
On the other hand, MN Capital founder Michael van de Poppe is more bullish on Ether. He believes that Ethereum is showing signs of breaking out relative to Bitcoin in January 2025. Van de Poppe notes that he "wouldn’t be surprised if $ETH / $BTC breaks through 0.04 in January."
Conclusion
As the crypto market continues to evolve, it’s clear that analysts have differing opinions on Ethereum’s potential performance in 2025. While some believe Ether may struggle to deliver meaningful rallies next year, others see opportunities for growth and increased adoption.
Ultimately, investors will need to carefully consider their options and do their own research before making any investment decisions.
Additional Insights
- According to CoinMarketCap data, Bitcoin’s price has surged by 121.4% since January 1, 2024.
- Ethereum’s price has only clocked a 46.3% return over the same period.
- The Duncan upgrade reduced gas fees and improved transaction capacity but arrived six months too late to capitalize on the memecoin rally.
- Only two out of 19 upgrades have had a notable positive impact on price, and even those occurred during Bitcoin bull markets.
References
- CoinMarketCap data
- TradingView data
- Cointelegraph article: "Bitcoin payments are being undermined by centralized stablecoins"
- X posts from Cold Blooded Schiller and Dal
