Ethereum, which has seen a significant jump in long-term holders in 2024, could potentially rally to as high as $6,000 in Q1 2025, according to analysts.
In a Dec. 29 X post, CryptoBullet, who has over 152k followers, noted that Ethereum is in the process of forming a bull pennant pattern on the 1-day ETH/USDT chart. He expects this pattern to be completed in the coming months, potentially leading to a massive surge to as high as $6,000 within Q1 2025.
In technical analysis, a bull pennant pattern forms after an asset experiences an uptrend and typically indicates a potential continuation of the rally.
The analyst recalled price action seen in May 2021 when ETH rallied past $4,000 for the first time after breaking out of a similar pattern in Q1 that year.
Analyst James CryptoGuru predicted a similar price target for Ethereum based on a technical indicator.
He noted that ETH has formed a multi-month bullish inverse head and shoulders pattern throughout 2024, which is expected to be completed by early 2025. If ETH breaks out of this pattern, it could potentially rally to as high as $8,100.
Meanwhile, fellow analyst Jelle also anticipates a major breakout for ETH, pointing that Bitcoin dominance has broken down from a multi-year trend. They highlighted that the last time this occurred, ETH’s price quadrupled within approximately five months.
The optimistic predictions from these experts align with a surge in the number of ETH long-term holders—those holding the asset for over a year—rising from 59% in January to 75% by the end of 2024. In contrast, BTC long-term holders dropped from 70% to 62% during the same period, according to a Dec. 30 X post from IntoTheBlock, citing its platform’s data.
The continued growth in long-term holders could help sustain ETH’s price rally as the asset heads into 2025.
Another potential catalyst for an Ethereum rally in Q1 lies in its historical performance patterns following the first quarters of years marked by a U.S. election and a Bitcoin halving cycle. According to CoinGlass data, the first quarter of 2017 and 2021 were among Ether’s best-performing quarters, with recorded gains of 518% and 161%, respectively.
Additionally, spot Ether exchange-traded funds have emerged as a major growth driver, witnessing inflows on 22 of the past 24 trading days and accumulating over $2.5 billion, according to data from SoSoValue.
The consistent momentum has fueled optimism, with one enthusiastic ETH advocate predicting that Ether ETFs could attract more than $50 billion in net inflows by 2025.
Despite the bullish catalysts, the second-largest cryptocurrency could face some downward pressure due to selling activity among large holders.
According to data from ITB, whale holder net inflow has dropped significantly, dropping from 220.88k ETH, valued at nearly $737 million on Dec. 23 to just 14.45k ETH valued at nearly $48 million on Dec. 28.
The sharp drop in whale investments indicates a potential loss of confidence in the asset’s future gains among large holders. Such a trend could influence retail investors, who often follow the moves of these experienced market participants.
At press time, Ether (ETH) was up 1%, exchanging hands at $3,413 per coin.
