Key Insights:
Ethereum could shed its undervaluation if its price moves beyond $4100.
Experts predict a rally to $6000 levels immediately if ETH crosses its $4k resistance zone.
Historical comparison with ETH/BTC charts also indicates a rally to the $15k level.
Bitcoin maximalist Michael Saylor also predicts that Ethereum could see better days under Donald Trump's Presidency.
After strong ETF gains of $200 million in the holiday season (24 to 31 December 2024), Ethereum has finally started to show green shoots of a bull rally. Today, Ethereum decisively crossed $3400 and has managed to stay above those levels after a brief consolidation. This price action could transform into a major breakout if ETH is able to cross $3500 this week.
$200 Million of Net ETF Inflows in Ethereum Last Week
Coinglass
$3500 Ethereum has only one major resistance at $4100 before it makes a new ATH above the $4800 level in Jan 2025. Once ETH gets above these levels, top chart expert Ali Martinez predicted a rally to the $6000 price target in a few weeks.
The top chart expert also sees a non-stop rally to these levels after Ethereum crosses the $4100 price level, which acts as a major resistance.
Unlike Bitcoin, which has little to no additional gain for investors, Ethereum, has staking rewards, re-staking benefits, and DeFi prizes that make it lucrative to hold. On the other hand, there is no benefit in holding Bitcoin except for the hope that its price rise will outperform others.
This is why at present, Ethereum has a better ratio of long term investors than Bitcoin. According to data by Into the Block, Ethereum's long term investors are at 74% as compared to Bitcoin's 72%.
Ethereum's Long Term Holders at 74%
Into The Block
Another data set from the same platform shows this trend has been the same since April 2024, almost 8 months ago. These investors held on to their ETH even when Bitcoin rallied to $100k, and memecoins gave triple-digit growth. As a result, we have a strong investor base in Etheruem that is not disturbed by minor corrections and sell-offs.
In an recent interview by Altcoin Daily, Michael Saylor conceded that his earlier statement on Ethereum was "off the mark". Saylor said that the current administration under Donald Trump could provide for a positive regulatory environment that would prove to be positive for Ethereum's growth.
However, he also speculated that there could be a situation where only Bitcoin gets approval as a commodity. The alternate situation being a net positive environment for all cryptocurrencies.
Here, Saylor does not take into account the SEC's investigation, which concluded Ethereum was not security prior to the approval of Ethereum ETFs in June 2024. This could easily pave for its approval as a commodity. In the worst-case scenario, even if that does not happen, Ethereum is anyways destined to be governed by the SEC after Presidential assent to the FIT-21 Act.
Several experts predict that Ethereum could rally to $15k in 2025, shedding its current undervaluation and gaining its historical relative price with Bitcoin.
Bankless co-founder Ryan Sean Adams sees a run to $10k levels. Adams sees Ethereum as a Triple-Point Asset and thinks its price could be grossly undervalued.
Further, Ethereum could see a lift in its valuations due to the repeat of a historical pattern. ETH/BTC charts show a repeat of the historical pattern that could take ETH to $15k in 2025.
ETH plays a major role in crypto ecosystem by supporting 50+ blockchains, more than 5,000 dapps, hundreds of DeFi protocols, and top DEXs like Uniswap, 1Inch, and Pancakeswap. Further, its EVM acts as a base for multiple larger chains like BNB and Polygon POS chains.
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