After a lackluster 2024, Ethereum has started 2025 strong, rising more than 13% since the beginning of the year. This impressive performance has reignited optimism among investors anticipating a bull year for ETH and the broader altcoin market. Ethereum’s early strength has raised the crucial question: Can it outperform Bitcoin in the post-halving year?
Senior Analyst Dan recently shared insightful data highlighting ETH’s early lead over BTC, driven by positive sentiment and historical patterns of strong seasonality. In his analysis, Dan noted that Ethereum often performs well during the first quarter, especially in post-halving years, setting the stage for a potential alternate season. This historical trend has many investors eyeing ETH as a promising contender for market dominance in 2025.
While Bitcoin is still the market leader, Ethereum’s early momentum could pave the way for it to challenge Bitcoin’s dominance this year. The combination of favorable market conditions, improving sentiment, and Ethereum’s strong start suggests that the altcoin leader is poised to reclaim its position as a high-performing asset. As the market prepares for what could be a historic year, all eyes are on ETH to see if it can maintain its momentum and outperform Bitcoin.
Ethereum shows strength but faces major challenges
Ethereum entered the new year on a bullish note, sparking optimism among analysts and investors alike. However, for ETH to confirm the continued uptrend, it must reclaim and hold last year’s highs. The early signs are promising, with ETH showing a 13% gain since the beginning of the year. Post-halving years are historically favorable for altcoins, and 2025 appears to be following this trend.
Senior Analyst Dan Share insightful data on Xhighlighting Ethereum’s strong start compared to Bitcoin. He noted that ETH is making an early advance against BTC, supported by positive sentiment and strong seasonal patterns. Historically, ETH has performed well in the first quarter of post-halving years, paving the way for a potential replacement season. This historical context gives investors confidence that Ethereum can outperform in the coming months.
Dan emphasized that while Ethereum is gaining momentum, the race between Ethereum and Bitcoin will be one to watch closely. He believes both assets will emerge as winners this year, as each offers unique growth opportunities. For ETH, reclaiming key levels and maintaining its early momentum is crucial to ensuring it lives up to these lofty expectations.
The coming weeks will be crucial as ETH seeks to capitalize on its early lead. With market conditions emerging as favorable and a history of strong performance in the first quarter, Ethereum is positioned for a potential 2025 year. However, it will need to overcome market challenges and prove its resilience to maintain the bullish outlook.
ETH tests key support
Ethereum is currently trading at $3,636, testing the 200 hourly moving average as support. This level is crucial to determine the next stage of ETH price movement. If the price continues above this moving average in the coming hours, it could indicate a strong basis for a bounce towards higher supply areas, paving the way for further upward momentum.
However, a short drift into lower supply areas could still be a healthy move for ETH. If such a decline occurs, it is necessary for the price to recover quickly – ideally within a few days – to maintain the bullish outlook. A continued decline could create uncertainty and test investors’ confidence in Ethereum’s upward trajectory.
For the uptrend to remain intact, ETH must settle firmly above the $3,500 level. This mark acts as a critical support area, and missing it could trigger 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 bigger rally.
Featured image by Dall-E, chart from TradingView
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