Analysts are optimistic about Ethereum's potential for a major rally in early 2025, despite its recent struggles to maintain a price above $4,000.
While Bitcoin has seen a significant increase in value over the past six months, Ethereum has lagged behind. However, recent market dynamics suggest that Ethereum may soon catch up to Bitcoin. Market analysts have pointed to a recent deleveraging in the crypto market, which could create a favorable environment for Ethereum to gain momentum.
Ethereum is currently aiming to break through the $4,100 threshold, which is seen as a crucial point for future growth. If successful, analysts believe the price could rally towards the previous all-time high of $4,865, with some even speculating a rise to as high as $8,800.
Ethereum's performance is closely tied to Bitcoin's halving cycle, and analysts are optimistic that Ethereum is on the verge of outperforming Bitcoin. Investor interest in Ethereum has surged, with a high level of wallet creation in December. This growing confidence among investors is expected to drive Ethereum's price upward. The strength of Ethereum in the derivatives market is another factor contributing to its bullish outlook. As the price of Ether builds momentum, the derivatives market could further amplify price increases.
While some firms have more conservative predictions, the overall sentiment is positive for Ethereum's growth in the upcoming market cycle.