Ethereum Expected to Experience Bullish Momentum in Q1 2025
Ethereum (ETH) is the second-largest cryptocurrency by market capitalization and may experience significant growth in Q1 2025, according to various crypto experts on X. Despite a year-to-date increase of almost 43%, ETH's performance lags behind Bitcoin (BTC), which has risen over 115% in 2024, and other alternative Layer-1 blockchains like Solana and SUI.
Ethereum Bullish Price Action In Q1 2025?
Experts suggest a shift in momentum for ETH, potentially marking a bullish phase in early 2025. Analyst Crypto Bullet indicates that ETH may be forming a bullish pennant on the daily chart, with a possible breakout target of $6,000 by March 2025.
Similarly, Anup Dhungana pointed out an inverse head-and-shoulders pattern on the weekly chart, suggesting a potential price surge. He estimates ETH could reach $8,000 by May 2025 but cautions about a possible dip to $2,800 before achieving new all-time highs.
Quinten Francois noted that historically, ETH has performed well in Q1 following U.S. presidential elections, which could indicate a favorable trend for Q1 2025.
ETH Staking To Create Supply Crunch?
Galaxy Research predicts that Ethereum will trade above $5,500 in 2025 due to favorable regulations related to staking and decentralized finance (DeFi). They estimate that the staking rate will exceed 50%, potentially causing a supply crunch that could drive prices higher.
Greater regulatory clarity from the Trump administration is likely, including the allowance of spot-based ETH ETPs to stake some percentage of ETH for shareholders. Demand for staking is expected to rise next year, which may lead Ethereum developers to consider changes to monetary policy.
Additionally, Galaxy Research forecasts that the ETH/BTC trading pair will end 2025 above 0.06, driven by anticipated regulatory support. A rise from approximately 0.03 could catalyze an upcoming altseason.
Analyst Carl Runefelt anticipates a significant movement for ETH at the start of the year. Currently, ETH trades at $3,345, down 0.7% in the last 24 hours.
