Ethereum poised for record highs in Q1 2025, analysts predict

Ether could surpass its previous all-time high during the first quarter of 2025, according to market analysts.

Ether (ETH) has been unable to remain above the key $4,000 psychological threshold despite Bitcoin (BTC) breaching the record $100,000 high on Dec. 6 for the first time in crypto history.

However, Ether may soon start catching up to Bitcoin’s gains following last week’s crypto market deleveraging, which is “indicative of a reset in leveraged long exposure,” according to a market report published by Bybit and Block Scholes.

The reduced leverage could set Ether up for a rally to a new all-time high during the first quarter of next year. Bybit analysts told Cointelegraph they expect “a new all-time high in Q1 2025.” “ETH shows strength in derivative markets as the price catch-up anticipation is in full swing,” they added.

However, Bitcoin has proven itself as the more lucrative investment product for 2024. Over the past six months, Bitcoin rose over 54%, while Ether only generated a 12% return on investment, Cointelegraph data shows.

Related: Corporate execs sell stock at record levels as Bitcoin nears 130% YTD returns

Ether to catch up to Bitcoin’s gains, as analysts eye $8,800 ETH price

Ether may be setting up for a rally to above $8,800 based on an ascending triangle on the daily chart — a technical chart formation used to spot the continuation of an uptrend.

However, Ether needs to cross the key $4,100 resistance level first, according to popular crypto analyst the Long Investor. “A break above $4,100 next, and this could run to the ATH level at $4,865. I am holding $ETH until $8,800,” the analyst wrote on X.

Based on Ether’s historic correlation with the Bitcoin halving cycle, ETH could start eclipsing more of Bitcoin’s momentum in December.

In an X post, the popular crypto analyst Venture Founder said, “Every cycle, following the Bitcoin halving, Ethereum underperformed BTC for no more than 8 months until it explodes against BTC.” They added:

“We are in the 8th month now. Right on track. Then ETH/BTC Ratio since halving goes to no less than 700% after, which for this cycle means ETH/BTC = 0.39”

Related: Bitcoin could hit $160K in 2025, fueled by improving macro conditions

Another signal showcasing the growing investor interest in Ether is the high amount of newly created wallets.

A daily average of over 130,000 Ethereum addresses were created during December, which marks an over eight-month high last seen in April, according to market intelligence platform Santiment.

However, other established crypto market participants are eying more conservative price targets. VanEck predicted a $6,000 cycle top for Ether price and a $180,000 Bitcoin price during 2025.

Magazine: ‘China’s MicroStrategy’ Meitu sells all its Bitcoin and Ethereum: Asia Express