Will Ethereum (ETH) Experience a Big Rally in 2025? Analysts are Divided! Here's the Reason...

While 2024 will be a year of massive increases for Bitcoin (BTC), the same cannot be said for Ethereum, as ETH has shown a more subdued performance compared to Bitcoin. Analysts predict that Ethereum will experience an explosion in 2025.

However, there is still no consensus among analysts.

At this point, CK Zheng, Chief Investment Officer of the crypto hedge fund ZX Squared Capital, stated that if history repeats itself, Ethereum could experience a major rally in the first quarter of 2025.

According to the analyst, the first quarters of the new year following the US elections and the Bitcoin halving cycle are the quarters where Ethereum performs best. Citing the years 2027 and 2021 as examples, the analyst pointed out that Ethereum saw increases of 518% and 161% in the first quarters of 2017 and 2021, respectively.

We expect the new Trump administration to issue more crypto-friendly rules and regulations to further stimulate the digital asset class and anticipate a significant increase in ETF entries by 2025.

At this point, we predict that Ethereum will experience a major rally.

Rally May Not Come for Ethereum (ETH)!

However, 10x Research founder Markus Thielen offers a more cautious outlook for Ethereum, predicting that ETH will perform poorly due to a hawkish macroeconomic environment and decreasing liquidity.

Thielen, who draws a scenario indicating a decline for ETH, said that he expects it to continue to underperform in a hawkish macro environment in 2025 and not break a new ATH.

We anticipate a more conservative outlook for 2025. Ethereum at the beginning of 2025 may be tested by hawkish policies and decreasing liquidity, which is different from previous years.

Contrary to the expected 3.4%, the Federal funds rate may stay close to 3.9% by 2025 after the FED meeting in December, which could lead to a less favorable macro environment for risky assets such as Bitcoin and Ether.