Ethereum's strength compared to Bitcoin: A rebound of alternative coins may come in 2025

In 2024, the cryptocurrency market showed a strong upward trend, with significant gains in various tokens including Bitcoin and Ethereum. While Bitcoin reached a new all-time high (ATH) of over $108,000, Ethereum failed to sustain above $4,000. However, despite the slower pace of price growth for Ethereum, market participants remain optimistic about the future of the second-largest cryptocurrency. Therefore, many believe that Ethereum may soon experience a significant rebound, and it could even surpass $5,000.

A significant development in the Ethereum market is the increasing participation of institutional investors. BlackRock's Ethereum holdings have exceeded 1 million ETH, with a market value of over $3.6 billion, demonstrating strong institutional interest. In addition, whale addresses for Ethereum have actively accumulated a large amount of ETH during the recent market pullback. It has been reported that one whale address has accumulated over $77 million worth of ETH, implying a potential price increase for the token in 2025.

Especially during market pullbacks, the accumulation of Ethereum has increased, indicating that bullish investors remain confident in the market while maintaining caution. These traders have not openly increased liquidity, but strategically kept the price above key support levels. This cautious optimism suggests that bullish investors may soon regain dominance, triggering a rebound in Ethereum and potentially ushering in the entire altcoin season.

Expected rebound in Ethereum price at the beginning of 2025

From a historical perspective, Ethereum usually performs strongly in the first few weeks of the year, especially in the first quarter. Therefore, many analysts predict that another bull market may emerge in the next few weeks. Bitcoin's market dominance typically declines in early January, often leading to an increase in Ethereum's price, as investors begin to shift their focus to Ethereum. Ethereum appears to have reached the end of the consolidation phase, preparing for a potential rebound.

From the weekly chart of Ethereum, the price trend is upward, continuously setting higher highs and lows. Despite facing resistance at the $4,000 level, bullish investors are still expected to push the price towards $5,000 in early 2025. Although the weekly MACD indicator shows a weakening buying momentum, the relative strength index (RSI) shows strong signs of recovery. This suggests that Ethereum may experience a temporary decline to $3,200, which could attract more buying pressure and push the price above key resistance levels, such as $4,100.

To maintain a healthy upward trend and break new highs, it is necessary to avoid the appearance of bearish crosses between the MACD and the signal line, which may hinder the upward momentum. If this situation can be avoided, Ethereum is expected to continue to rise and is likely to soon break through the $5000 mark.