Analyst Predicts Strong Performance for Ethereum in 2025
Ethereum (ETH) is recovering after dropping to the $3,100 support zone last week. The second-largest cryptocurrency is attempting to exit its downtrend, with some analysts predicting a significant rally in 2025.
Ethereum Key Levels To Reclaim
With the end of 2024 approaching, market analysts are forecasting Ethereum's potential performance for 2025. Despite recent pullbacks, predictions indicate a strong outlook for Ethereum next year.
Ethereum has struggled to establish the $4,000 level as support. After surpassing this level earlier this month, ETH faced three rejections, including a recent peak at $4,100 before a 7.3% retracement.
As Bitcoin (BTC) dropped to $92,000, Ethereum fell to the $3,100 support zone, marking its lowest price in a month. Since then, ETH has fluctuated between $3,200 and $3,550 but has not exceeded this range for four days.
However, Ethereum has breached its downtrend line and is working to reclaim the $3,500 support. A crypto analyst observed that ETH appears to have broken and retested its one-week downtrend after regaining the $3,400 support.
According to this analysis, a “clean breakout” from this downtrend could enable Ethereum to retest higher levels. Analyst Ali Martinez noted that the next major support zone lies between $3,032 and $3,132, with 4.85 million ETH purchased by 3.69 million addresses.
The upcoming resistance zone is between $3,640 and $3,740, where over 2 million addresses acquired approximately 4.3 million ETH. Martinez indicated that “a sustained close outside this no-trade zone will determine the direction of ETH’s trend.”
Will ETH Follow 2021’s Performance?
Analyst Ted Pillows noted that the first four months post-U.S. elections typically show bullish trends for ETH. Historical data indicates that Ethereum achieved substantial gains in early 2016 and 2020.
In 2017, Ethereum began the year with a 31.92% increase in January, while in January 2021, it surged by 78.51%. Both years saw ETH reach peak monthly performances between March and April, yielding returns of 214% and 44%, respectively.
If Ethereum replicates this historical performance, its price could exceed the all-time high (ATH) of $4,878 set in January and continue upward through Q1.
Crypto trader Immortal highlighted similarities between Ethereum's recent behavior and its price action from 2020-2021. In early 2021, ETH experienced a significant rise followed by consolidation and a breakout, ultimately retesting lower levels.
After reclaiming breakout levels in 2021, ETH continued to rally towards its previous ATH of $4,300, eventually reaching its current ATH at year-end. The trader suggests that ETH is retesting the consolidation range following last week's dip, indicating potential for future gains. Currently, Ethereum is trading at $3,501, reflecting a 6.3% increase over the past 24 hours.