Analysts predict that Ethereum will be "extremely bullish" in 2025.

After dropping below the $3,100 support zone last week, Ethereum (ETH) has begun to rise a few levels. With some market observers predicting a huge surge in 2025, the second-largest cryptocurrency is trying to reverse its downward trajectory.

Key Levels of Ethereum to Recover

With just one week remaining in 2024, a number of industry observers have begun predicting how the cryptocurrency market would do in the coming year. Even with the recent declines, a number of analysts have forecast that Ethereum will perform exceptionally well in 2025.

The $4,000 barrier has been difficult for the King of Altcoins to convert into support. ETH has been rejected three times from this price range after surpassing it earlier this month. Ethereum made its most recent effort a week ago, when it surged to $4,100 before retracing 7.3%.

The second-largest cryptocurrency, Bitcoin (BTC), dropped to $92,000, its lowest level in a month, and then continued to plummet to the $3,100 support zone. Since then, Ethereum has spent the last four days circling between $3,200 and $3,550 without managing to break through the upper part of the price range.

The cryptocurrency is making an effort to recover the $3,500 support, meanwhile, after breaking out of its downtrend line. After recovering the $3,400 support, ETH seems to have broken and retested its one-week downtrend, according to a cryptocurrency analyst.

A “clean breakout” of this downward trend might cause the Bitcoin to retest higher levels, the report claims. Ali Martinez pointed out that 4.85 million ETH were purchased by 3.69 million addresses, indicating that the next significant support zone for ETH was between $3,032 and $3,132.

Between $3,640 and $3,740, Ethereum’s next significant opposition wall, more than 2 million addresses purchased about 4.3 million ETH. “A sustained close outside this no-trade zone will determine the direction of ETH’s trend,” according to Martinez.

Is ETH Going to Follow 2021's Results?

“The first four months after U.S. elections are often highly bullish for ETH,” noted analyst Ted Pillows. Following the US elections in 2016 and 2020, Ethereum saw enormous increases in the first three months of the year, according to the data.

In January 2021, Ethereum saw a 78.51% growth, while in 2017, it began the year with a 31.92% increase in the first month. ETH’s monthly performances peaked in March and April in both years, with returns of 214% in 2017 and 44% in 2021.

Ethereum’s price may rise over its all-time high (ATH) of $4,878 in January and continue to rise for the remainder of Q1 if this historical performance is replicated.

Ethereum’s current performance is similar to its 2020–2021 price action, according to cryptocurrency trader Immortal. The graph indicates that before stabilizing in its new range, ETH experienced a notable increase in early 2021. A breakout and a sharp decline to retest the consolidation zone ensued.

ETH, on the other hand, continued to rise toward its prior ATH of $4,300 after regaining its breakthrough levels in 2021, ultimately reaching its current ATH at the year’s close.

After last week’s decline, the trader observes that ETH is retesting the consolidation zone, suggesting that if it continues on this trajectory, the cryptocurrency may rise in the upcoming weeks. Ethereum is currently trading at $3,501, up 6.3% over the previous day.

Frequently Asked Question

Why are analysts predicting Ethereum will be "extremely bullish" in 2025?

Analysts forecast Ethereum’s bullish performance due to its historical trends, market recovery efforts, and strong support levels. A clean breakout of its current resistance zones could push ETH towards new highs in the coming years.

What are Ethereum's key support and resistance levels as of now?

Ethereum’s current key support levels range between $3,032 and $3,132. On the resistance side, the significant opposition lies between $3,640 and $3,740. These levels are crucial for ETH’s next price movements.

How does Ethereum's recent performance compare to its historical trends?

Ethereum’s current trajectory resembles its 2020–2021 performance, where it experienced consolidation, breakout, and retesting phases before reaching its all-time high. Similar patterns could signal a bullish trend in the near future.

How have past U.S. elections impacted Ethereum's price?

Historically, Ethereum has shown significant gains in the first four months following U.S. elections, with substantial growth observed in 2017 and 2021. Analysts believe this pattern may repeat, influencing ETH’s performance positively in 2025.

What are the potential milestones for Ethereum's price in 2025?

If Ethereum continues its current trend and replicates historical patterns, it could surpass its previous all-time high of $4,878. Analysts suggest that ETH might see considerable growth in Q1 of 2025, driven by market dynamics and historical performance trends.