Is Ethereum Set for a Bullish Q1 2025? Expert Insights

Ethereum (ETH), the second-largest cryptocurrency by market value, may eventually have its moment in Q1 2025. Crypto professionals took to X to discuss a potentially optimistic start to the new year for ETH.

Will Ethereum See Bullish Price Action in Q1 2025?

Although Ethereum is up about 43% year to date (YTD), its performance pales compared to Bitcoin (BTC), which has increased by more than 115% in the same period. Furthermore, other alternative Layer-1 blockchains, such as Solana (SOL) and SUI, have significantly outperformed ETH in 2024.

However, the momentum may soon flip in ETH's favour, as analysts predict that Q1 2025 will be a bullish period for the world's largest smart contract platform. According to crypto expert Crypto Bullet, Ethereum is creating a bullish pennant on the daily chart, with a potential breakout to $6,000 by March 2025.

Similarly, cryptocurrency specialist Anup Dhungana pointed out another bullish signal building on the weekly chart. He referred to an inverse head-and-shoulders pattern, a well-known bullish indication that indicates an upcoming price increase.

According to Dhungana's study, ETH might reach $8,000 by May 2025. However, he cautioned that the digital asset may fall to $2,800 before reaching new all-time highs (ATH).

Quinten Francois, a veteran crypto expert, also provided an interesting perspective. He observed that ETH has traditionally shown significant growth in the first quarter of the year following a US presidential election. If this historical trend continues, Q1 2025 might be quite bullish for Ethereum.

Could ETH Staking Trigger a Supply Crunch?

In addition, Galaxy Research predicted that Ethereum would trade above $5,500 in 2025 owing to potentially favourable rules surrounding staking and decentralized finance (DeFi).

Galaxy Research also predicted that Ethereum's staking rate will exceed 50%, causing a supply shortage that could result in a dramatic price spike. The firm explained:

Furthermore, Galaxy Research

predicted that the ETH/BTC trading pair would close 2025 trading above 0.06, boosted by anticipated regulatory tailwinds. A rise in this trading pair from its present lows of around 0.03 could serve as a spark for the much-anticipated altseason.

Crypto researcher Carl Runefelt predicts a significant surge for ETH at the start of the new year. At press time, ETH is trading at $3,345, down 0.7% in the last 24 hours.