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Despite rising more than 65% year over year (YTD), Ethereum (ETH) was overshadowed by Bitcoin (BTC) and other cryptocurrencies like Solana (SOL) and XRP due to its extraordinary price gains throughout 2024.
Analysts increasingly rising on ETH, with five-figure price targets expected for the second-largest cryptocurrency.
Ethereum finally having its moment?
The leading smart contract platform had a relatively modest performance in 2024. ETH traded at $2,350 on January 1, at just above $3,800, representing a gain of more than 65%.
However, a 65% annual increase is often viewed as average in the cryptocurrency industry, especially during a bull market. Now, cryptocurrency analysts are increasingly indicating that the ETH breakout moment may finally be approaching.
For example, prominent cryptocurrency analyst and trader @CryptoKaleo said on In addition to the analyst anticipation The ETH/BTC trading ratio could rise to 0.1 by January 2025.
For context, the ETH/BTC trading pair – commonly called the ETH/BTC ratio – measures the performance of ETH compared to BTC. A higher ratio indicates that ETH is outperforming Bitcoin, while a lower ratio indicates the opposite.
Looking at the weekly chart below, ETH has been in a long downtrend against BTC since at least September 2022. However, the pair now rests at a multi-year support level around 0.038 and is expected to rebound against BTC in the coming weeks.
On a shorter time frame, cryptocurrency observer @TheLongInvestor noted that ETH has once again risen above the upper trend line to form a symmetrical triangle on the daily chart. The analyst suggested that a break above $4,100 could pave the way for ETH to challenge its all-time high (ATH) of $4,865.
ETH funding prices return to neutral levels
Another interesting observation comes from cryptocurrency analyst General Byzantine, who… Highlight That despite ETH’s consistent upward price movement, futures basis and perpetual swap funding rates have reset to neutral levels.
In other words, the market does not appear to be overly speculative or leveraged in favor of long positions, even though the price of ETH has been steadily rising. This reset can signal healthy market conditions and the potential for further upward movement, without the risk of excessive leverage leading to volatility.
next to rising Chart patterns, ETH fundamentals are getting stronger. A recent report indicated great importance He increases in net Ethereum stake inflows, enhancing the long-term value proposition. At press time, Ethereum is trading at $3,925, down 0.8% over the past 24 hours.
Featured image from Unsplash.com, charts from X and TradingView.com
