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Ethereum, which saw a big jump in long-term holders in 2024, will likely rise to a level of $6,000 in the first quarter of 2025, according to analysts.
On December 29 mailCryptoBullet, which has over 152k followers, noted that Ethereum is forming a bullish pennant pattern on the ETH/USDT one-day chart. This pattern is expected to complete in the coming months, which could lead to a massive rise of up to $6,000 during the first quarter of 2025.
In technical analysis, a bull flag pattern forms after an asset experiences an uptrend and usually indicates a potential continuation of the rally.
The analyst pointed to the price action seen in May 2021 when ETH rose above $4,000 for the first time after breaking out of a similar pattern in the first quarter of that year.
Analyst James CryptoGuru anticipation Similar price target for Ethereum based on a technical indicator.
He noted that Ethereum has formed a head and shoulders reversal pattern for several months throughout 2024, and is expected to complete by early 2025. If Ethereum breaks out of this pattern, it will likely rise to the $8,100 level.
Meanwhile, fellow analyst Jelly also expected It is a major breakout for ETH, indicating that Bitcoin’s dominance has collapsed from a multi-year trend. They stressed that the last time this happened, the price of ETH quadrupled in about five months.
The optimistic forecasts from these experts are consistent with the increase in the number of long-term ETH holders – those who hold the asset for more than a year – rising from 59% in January to 75% by the end of 2024. In contrast, the percentage of long-term BTC holders has declined. The term increased from 70% to 62% during the same period, according to December 30. mail From IntoTheBlock citing its platform Data.
Continued growth in long-term holders could help keep ETH prices higher as the asset heads into 2025.
Another potential catalyst for Ethereum’s Q1 rally lies in… Historical performance patterns After the first quarters of years marked by the US elections and the Bitcoin halving cycle. According to CoinGlass data, Q1 2017 and 2021 were among the best-performing quarters for Ethereum, with recorded gains of 518% and 161%, respectively.
Additionally, Ethereum ETFs have emerged as a major driver of growth, seeing inflows in 22 of the past 24 trading days and accumulating more than $2.5 billion, according to Data From Soso Value.
The continued momentum has fueled optimism, with one ardent advocate for ETH Prediction Ethereum ETFs could attract more than $50 billion in net inflows by 2025.
Despite the bullish catalysts, the second-largest cryptocurrency may face some downside pressure due to selling activity among its major holders.
according to Data From ITB, the net inflow of whale holders decreased significantly, falling from 220.88K ETH, worth approximately $737M on December 23 to just 14.45K ETH, worth approximately $48M on December 28.
The sharp decline in whale investments indicates a potential loss of confidence in the asset’s future gains among large holders. Such a trend It could affect retail investorswho often follow the movements of these experienced market participants.
At the time of publication, Ether (Ethereum) by 1%, and was traded at $3,413 per coin.
