After a weak 2024, Ethereum has started 2025 with a bang, rising over 13% since the year began. This impressive performance has rekindled optimism among investors who expect a bullish year for ETH and the broader altcoin market. Ethereum’s early strength has raised the critical question: Can it outperform Bitcoin in this post-halving year?
Top analyst Daan recently shared insightful data highlighting ETH’s early lead over BTC, driven by positive sentiment and historical patterns of strong seasonality. In his analysis, Daan pointed out that ETH often performs well in the first quarter, especially in post-halving years, setting the stage for a potential alt season. This historical trend has led many investors to see ETH as a promising contender for market dominance in 2025.
While Bitcoin is still the market leaderEthereum’s early momentum could pave the way for it to challenge BTC’s dominance this year. The combination of favorable market conditions, improved sentiment and Ethereum’s strong start suggest that the altcoin leader is poised to reclaim its position as a top-performing asset. As the market gears up for what could be a historic year, all eyes are on ETH to see if it can maintain its momentum and outshine Bitcoin.
Ethereum shows strength but faces important challenges
Ethereum has entered the new year on a bullish note, sparking optimism among analysts and investors alike. However, for ETH to confirm a sustained uptrend, it must recapture and hold last year’s highs. The early signs are promising, with ETH showing a 13% YTD increase. The post-halving years are historically favorable for altcoins, and 2025 seems to follow the trend.
Top Analyst Daan shared insightful data about Xwhich highlights Ethereum’s strong start compared to Bitcoin. He noted that ETH is taking an early lead against BTC, supported by positive sentiment and strong seasonal patterns. Historically, ETH has performed well in the first quarter of post-halving years, setting the stage for a potential alt season. This historical context gives investors confidence that Ethereum could perform better in the coming months.
Daan emphasized that while Ethereum is gaining momentum, the race between ETH and BTC will be one to watch closely. He believes both assets will emerge as winners this year, each offering unique opportunities for growth. For ETH, regaining key levels and maintaining its early momentum is critical to ensure it lives up to these lofty expectations.
The coming weeks will be crucial as ETH looks to capitalize on its early lead. With market conditions appearing favorable and a history of strong Q1 results, Ethereum is positioned for a potential breakthrough in 2025. However, it will need to navigate market challenges and prove its resilience to sustain the bullish outlook.
ETH is testing key support
Ethereum is currently trading at $3,636, testing the critical 4-hour 200 moving average as support. This level is crucial in determining the next phase of ETH’s price action. If the price holds above this moving average in the coming hours, it could signal a strong foundation for a rally towards higher supply zones, setting the stage for further bullish momentum.
However, a short deviation to lower supply zones could still be a healthy move for ETH. If such a decline occurs, it is important that the price recovers quickly – ideally within a few days – to maintain the bullish outlook. A sustained decline could introduce uncertainty and test investor confidence in Ethereum’s upward trajectory.
For the bullish trend to remain intact, ETH must hold firmly above the $3,500 level. This mark acts as a critical support zone, and its loss would risk deeper corrections. On the other hand, reclaiming the $3,900 level is equally important, as it would reinforce the bullish structure and open the door to a larger rally.
Featured image from Dall-E, charts from TradingView
