Key Points
Ethereum’s Potential Price Surge
Ethereum has experienced a significant increase in long-term holders in 2024.
Analysts predict that it could potentially rally to as high as $6,000 in the first quarter of 2025.
CryptoBullet, a well-known analyst with over 152k followers, noted that Ethereum is forming a bull pennant pattern on the 1-day ETH/USDT chart.
He anticipates that this pattern will be completed in the upcoming months, potentially leading to a massive surge to as high as $6,000 within Q1 2025.
In technical analysis, a bull pennant pattern usually forms after an asset experiences an uptrend.
This pattern typically indicates a potential continuation of the rally.
CryptoBullet recalled the price action seen in May 2021 when Ethereum rallied past $4,000 for the first time after breaking out of a similar pattern in the first quarter of that year.
James CryptoGuru, another analyst, predicted a similar price target for Ethereum based on a technical indicator.
He noted that Ethereum has formed a multi-month bullish inverse head and shoulders pattern throughout 2024, which is expected to be completed by early 2025.
If Ethereum breaks out of this pattern, it could potentially rally to as high as $8,100.
Jelle, a fellow analyst, also anticipates a major breakout for Ethereum, noting that Bitcoin dominance has broken down from a multi-year trend.
He highlighted that the last time this occurred, Ethereum’s price quadrupled within approximately five months.
The optimistic predictions from these experts align with a surge in the number of Ethereum long-term holders.
Those holding the asset for over a year rose from 59% in January to 75% by the end of 2024.
In contrast, Bitcoin long-term holders dropped from 70% to 62% during the same period.
The continued growth in long-term holders could help sustain Ethereum’s price rally as the asset heads into 2025.
Another potential catalyst for an Ethereum rally in Q1 lies in its historical performance patterns following the first quarters of years marked by a U.S. election and a Bitcoin halving cycle.
Spot Ether exchange-traded funds have emerged as a major growth driver, witnessing inflows on 22 of the past 24 trading days and accumulating over $2.5 billion.
The consistent momentum has fueled optimism, with one enthusiastic Ethereum advocate predicting that Ether ETFs could attract more than $50 billion in net inflows by 2025.
Despite the bullish catalysts, the second-largest cryptocurrency could face some downward pressure due to selling activity among large holders.
Whale holder net inflow has dropped significantly, from 220.88k Ethereum, valued at nearly $737 million on Dec. 23 to just 14.45k Ethereum valued at nearly $48 million on Dec. 28.
The sharp drop in whale investments indicates a potential loss of confidence in the asset’s future gains among large holders.
Such a trend could influence retail investors, who often follow the moves of these experienced market participants.
At press time, Ether was up 1%, exchanging hands at $3,413 per coin.
