Ether (ETH) could be poised for a significant rally in the first quarter of 2025, according to historical trends, although some analysts remain cautious. Historically, post-U.S. election years and Bitcoin halving cycles have resulted in strong Q1 performances for Ether, most notably in 2017 and 2021 when it surged by 518% and 161% respectively, outperforming Bitcoin’s gains in those periods.
Ether’s potential for appreciation may be bolstered by recent inflows into spot Ether exchange-traded funds (ETFs), which have seen net inflows of over $2.5 billion in the last 24 trading days of 2024. Analysts anticipate that the new Trump administration’s crypto-friendly policies could drive these figures even higher, possibly reaching $50 billion in 2025.
However, some experts express caution about the broader economic environment. Markus Thielen of 10x Research predicts that Ether may struggle to achieve a new all-time high in 2025 due to a challenging macroeconomic climate. This concern stems from the Federal Reserve’s recent decision to reduce the number of projected interest rate cuts in 2025, affecting liquidity in the market.
Despite the apprehensive outlook for Ether, there remains optimism about Bitcoin’s potential, with forecasts suggesting it could reach $160,000 in a best-case scenario. Currently, Bitcoin trades at $93,492, while Ether is valued at $3,997, still recovering from its peak in November 2021. As the market evolves, investors are closely watching these developments, weighing historical patterns against current economic conditions.
