Ethereum Hodler Ratio Surpassed BTC’s In 2024 – Will History Repeat?

As a seasoned analyst with over two decades of experience in the crypto market, I’ve seen my fair share of ups and downs, bull runs, and bear markets. The performance of Ethereum in 2024 has been underwhelming, to say the least. However, looking at the historical trends, I am optimistic that altcoins like ETH tend to perform well during post-halving years.

2024 was not a particularly impressive year for Ethereum, falling short compared to Bitcoin and several leading altcoins. While Bitcoin reached unprecedented peaks, Ethereum struggled to regain its bullish momentum, causing some uncertainty among investors about its market standing. Yet, the following year might present a more optimistic picture, as past patterns indicate that altcoins like Ethereum tend to perform well post-halving.

One of Ethereum’s advantages stems from its increasing popularity and strong investor community. Data from IntoTheBlock reveals that ETH’s holder ratio exceeds that of Bitcoin, suggesting a change in long-term holding mentality. This significant development is worth noting since Bitcoin investors have been cashing out following Bitcoin’s recent record highs, thus decreasing their market share.

In simpler terms, this situation might pave the way for Ethereum (ETH) to regain its position of strength and potentially trigger an “altseason” in 2025. As more investors show long-term commitment towards ETH, the amount available for trading decreases significantly. This limited supply could spark a price increase once demand picks up again.

With Ethereum starting a fresh phase, the market keeps a close eye for indicators that may trigger its rebound and possible surge within the upcoming months. It’s yet unknown if ETH will leverage these statistics, but there’s increasing hope for a more prosperous year in the horizon.

Is Ethereum Losing Power? 

Increasing numbers of financial experts and investors are voicing concerns that Ethereum might be entering a challenging phase, as it’s been unable to surpass its annual peak prices and instead keeps establishing new lower highs. Although there’s widespread enthusiasm about Ethereum’s future prospects, the absence of positive price trends is causing uncertainty about its short-term future.

The performance of Ethereum’s pricing, when compared to Bitcoin and various other digital currencies, has been relatively subdued, causing some observers to ponder whether Ethereum might encounter a tougher stretch in the financial market.

Top analyst Maartunn recently disclosed some key findings about X, indicating that the number of Ethereum investors holding onto their coins exceeds that of Bitcoin holders currently. This change is noteworthy since it suggests a growing trend among investors who are opting to keep ETH for longer periods, possibly because they’ve cashed out their Bitcoin profits. As a result, Maartunn poses an intriguing question: Might Ethereum investors choose to do the same when ETH ultimately surpasses its previous record highs?

2025 might hold promising prospects for Ethereum, given its increasing popularity and the possibility of an altseason. However, maintaining the current trajectory carries some risks. If Ethereum fails to surpass its previous All-Time High (ATH) and instead continues to form lower highs, this could indicate a longer period of consolidation or even a steeper correction. As a crypto investor, it’s crucial to keep an eye on these trends and be prepared for potential shifts in the market.

In deciding whether Ethereum can benefit from favorable trends next year, rather than encountering tougher circumstances, it’s essential to consider prevailing market opinions and crucial pieces of data.

ETH Testing Liquidity Before The Next Push

right now, Ethereum is being exchanged at approximately $3,400 following a few days where it has been consolidated beneath the crucial $3,550 mark. The price movement seems bearish since Ethereum hasn’t been able to maintain this level as support and instead has continued to create a series of lower peaks. This continuous pattern implies that there is more selling pressure in the market than buying. Unless Ethereum recovers its strength, it may potentially slide down even further.

Nevertheless, Ethereum might yet experience a resurgence if it manages to surpass the crucial $3,750 barrier. Overcoming this threshold could indicate a possible turnaround and pave the way for a robust upswing. If buyers successfully retake $3,750 and sustain it as a support level, Ethereum is likely to witness an impressive surge, potentially reaching new peaks in the forthcoming weeks.

In the immediate future, whether Ethereum can surpass and maintain above $3,750 is vital in predicting its next significant price action. If this level fails again, Ethereum might prolong its downward trend and experience further corrections. As a result, investors and analysts will be keenly observing for any indications of a breakout to ascertain the direction Ethereum’s price may take next.

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2024-12-28 00:42