Will Ethereum (ETH) Experience a Major Rally in 2025? Analysts Are Split! Here's Why…

While 2024 was a year of tremendous increases for Bitcoin (BTC), the same was not true for Ethereum. While ETH showed a duller performance compared to Bitcoin, analysts predict that Ethereum will explode in 2025.

However, there is still no consensus among analysts.

At this point, CK Zheng, Chief Investment Officer of crypto hedge fund ZX Squared Capital, stated that if history repeats itself, Ethereum could experience a major rally in the first quarter of 2025.

According to the analyst, the first quarters of the new year, which came after the US elections and the Bitcoin halving cycle, were the quarters in which Ethereum performed best. The analyst cited 2027 and 2021 as examples, noting that Ethereum increased by 518% and 161% in the first quarters of 2017 and 2021, respectively.

“We expect the new Trump administration to issue more crypto-friendly rules and regulations to further stimulate the digital asset class overall, and ETF inflows to increase significantly in 2025.

At this point, we predict Ethereum will experience a big rally.”

A Rally May Not Come for Ethereum (ETH)!

However, 10x Research founder Markus Thielen offers a more cautious outlook on Ethereum, predicting that ETH will underperform amid a hawkish macroeconomic environment and declining liquidity.

Drawing a bearish scenario for ETH, Thielen said he expects it to continue to underperform and fail to break a new ATH in 2025 amid a hawkish macro environment.

“We foresee a more conservative outlook for 2025. At the start of Ethereum 2025, the hawkish policy may be tested by decreasing liquidity, unlike in previous years.

“Following the December Fed meeting, the federal funds rate could stand near 3.9% in 2025, rather than the expected 3.4%, which could lead to a less favorable macro environment for risk assets like Bitcoin and Ether.”

*This is not investment advice.