By Michael Scott
Ethereum breaches $4k once more, as analysts are bullish on ETH potential to a new all-time high (ATH).
Ethereum staged a comeback to breach $4,000, coinciding with Bitcoin’s surge to set a new peak at $106,352 per CoinGecko data. While the impressive intraday gains in crypto are attributed to the optimistic Consumer Price Index (CPI), industry analysts speculate ETH will hold above $4,000 and set a new peak soon.
Ether Reaps in Strong Derivative Interest
Crypto exchange Bybit analysts reveal that Ethereum is witnessing strong derivative interest. They project that ETH will leverage this tailwind to push the altcoin king to new heights in Q1 2025.
The bold outlook by ByBit analysts emerges as Ether now seems to chug along despite Bitcoin’s dominance in 2024 slowly. According to MarketWatch data, Ether has registered a 72% year-to-date gain when it added several spot exchange-traded funds (ETFs) of its own.
With momentum flooding the crypto space following Donald Trump’s re-election, Ethereum will likely snatch the spotlight in the subsequent quarter. Notably, the Ethereum network has witnessed an uptick in activity this December to an average 130,000 new addresses daily.
Ethereum potential to hold above the $4,000 milestone will ride on the growing crypto community interest. Ultimately, the decentralised finance (DeFi) king will ride on the coattails of recent elevation past $4K to hit a new peak soon.
While it has been over three years since the second-in-command crypto posted a $4,878.26 peak, analysts estimate the timeline for Ether to shine is the next quarter. This prediction as ETH rallied 4.2% from $3,849.20 to its 24-hour peak at $4,012.57, CoinGecko data shows.
Is Strong Derivative Momentum Path for Ethereum New Peak?
Bybit analysts acknowledge that Ethereum is witnessing strong derivative momentum after the markets underwent deleveraging late last month. The analysts observe that as the crypto space ran hot following Trump’s victory, an inevitable cool-off emerged as the investors prioritized taking profits. Ultimately, they minimised the exposure to the leverage.
Now that the dust already settled, Bybit analysts believe more traders are bound to re-open derivatives positions, especially in Ether. Consequently, the analysts indicate that as activity momentum grows, Ethereum’s pace could likely match Bitcoin’s in the next quarter.
Ethereum to Overcome Bitcoin Shadow
The analysts are confident that Ethereum will ultimately overcome the Bitcoin shadow. Beyond the solid derivative momentum, Ethereum is leveraging other strong growth metrics hinting at an upward trajectory.
Analyst Venturefounder notes that Ether has trailed Bitcoin post-halving for a period not surpassing eight months. This is followed by a historical breakout, eventually out-perfering Bitcoin.
The Bybit report shows it has been eight months since the April 2024 halving. They indicate that if history replicates past post-halving cycles, ETH is warming up for a huge January leap.
While there is no guarantee that crypto will replicate past history, the pro-crypto regulation and Bitcoin focus under Trump’s leadership could trigger performance variations.
Ethereum is destined for upside driven by exponential growth in the on-chain activity. On-chain data platform Santiment indicates that the protocol has seen the best surge in new wallet addresses, setting an eight-month high.
Santiment adds that 130200 new addresses have hit Ether’s DeFi network daily since the onset of this month. While the on-chain activity could push ETH to higher prices, the critical step is for Ether to hold above $4,000, an objective it has yet to manage.
Ethereum to Hit $5,000
CryptoQuant’s recent report considers Ethereum destined to blast above the $5,000 driven by network activity and institutional demand. Per the firm account, the spot Ethereum ETFs have too broken records as investors allocated $1.9 billion in the past 13 days. The allocation elevates the total net assets to $13.2 billion per SoSoValue data.
The CryptoQuant report reveals Ethereum has witnessed a total daily transition surge of 6.5M to 7.5M this year. Such a significant improvement from the 5 million attained last year.
CryptoQuant cites the valuation metrics to suggest that ETH will exceed $5,000 due to current demand and supply dynamics. Besides, the higher network activity shows an uptick in Ethereum usage. Such results from the higher demand for Ether network capabilities reflect the expanding adoption of decentralised applications.
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