Ethereum (ETH) has started 2025 on a strong note, bringing more than 9% in the first days and rekindling the hope of investors. Ethereum has struggled against Bitcoin in recent months, but analysts now predict a bullish turnaround, expecting strong performance during the first quarter of the year.
Ethereum’s historical tendency towards a major Q1, even when Bitcoin was sluggish, was picked up by the prominent analyst Daan. As he shares on X, his analysis shows that the ETH/BTC ratio surge coincided with previous altcoin market rallies – in 2020 and 2021.
Ethereum Trades Near $3,595
Ethereum priced at $3,595 is now trading at a high of $3,629, yesterday. Although the ETH/BTC ratio nears a critical resistance of 0.04, analysts are forecasting its short term trajectory based on what it would have to do to overcome that resistance. A break above this threshold would be a decisive break adding to investor confidence ushering in huge gains and could be the beginning of a much wider altcoin rally.
Yet uncertainty exists ahead of us. Ethereum has repeatedly demonstrated resilience since delivering a rebound off its late December dip, however, a hold higher than $3,500 would be necessary to preserve the bullish trend. They warn that routine failure to overcome key resistance rates would logically portend continued relative underperformance vis-a-vis Bitcoin.
And Ethereum is widely expected to be entering a pivotal phase of coming weeks. The mood of the market indicates that attitude towards Q1 could carry forward to the rest of the year. Traders will watch for consolidation around current levels and in case the close will be strong breakout above $3,629 could initiate a sustained rally.
Ethereum’s chances to capitalize on early year strength as the cryptocurrency market breaks out of its seasonal correction will be paramount. Cautious optimism for now, investors hoping to see decisive moves that could tip the scales in 2025 as to which way ETH will go.
