Ethereum’s native token, Ether (ETH), is capturing significant attention amidst a downturn in the Solana network, particularly after the LIBRA memecoin incident. An analyst suggests that Ethereum could experience a notable rally in the coming weeks, potentially extending until the end of March.
Honey, a full-time crypto trader, posits that historical performance data signals a promising uptrend for Ethereum in the latter half of Q1, a pattern observed since 2020 irrespective of market conditions. Highlighting back in 2022, Ethereum managed a 50% rally even during a bear market. Historical data reflects Ethereum’s average return of 40% during the final six weeks of Q1, with predictions now suggesting potential gains of 20% to 22%, aiming for a price target of around $3,500.
However, prospects in 2025 look distinct due to an increase in the number of altcoins since the previous cycle. Honey cautions that if Ethereum fails to rally by the end of Q1, optimism could wane.
Similarly, another crypto trader, Rektproof, notes that an ETH long position appears attractive. They compare Ethereum to Bitcoin and gold, assets that have historically surged post-accumulation. Data suggests Ethereum could witness a bullish reversal, potentially reaching a new all-time high above $6,000.
Despite the bullish outlook, Ethereum faces challenges to break from its current stagnation, mimicking a downturn observed from Q2 to Q3 in 2024. For Ether to bypass another prolonged period of price stasis beneath $2,800, achieving a daily close above the $2,800-$2,850 range is crucial. Failure to do so could lead prices to retrace to current lows below $2,300.
