As the year 2024 comes to a close, cryptocurrency analysts are sharing their predictions for Ethereum’s performance in 2025. In this article, we’ll delve into the opinions of several experts, including Markus Thielen, head of research at 10x Research, who believes that Ether may not be the wisest investment choice for a 2025 bull run.
Ethereum’s Underwhelming Returns
According to Thielen, Ethereum might deliver underwhelming returns compared to Bitcoin in 2025. He attributes this prediction to several factors, including the lack of real demand outside of staking and the negative growth rate of validators over the past 30 days.
While we appreciate Ethereum’s volatility, we believe it remains a poor medium-term investment and expect ETH to underperform BTC once again in 2025.
— Markus Thielen, Head of Research at 10x Research
Thielen’s stance on Ethereum is clear: "avoid." He emphasizes the importance of watching the trend in active validators in 2025, as a rise in unstaking seems logical due to the network’s lack of real demand outside of staking.
Analysts’ Divergent Views
However, not all analysts agree with Thielen’s assessment. Attestant’s chief business officer, Tim Lowe, believes that refined marketing and a unified value proposition can increase demand for Ether and attract more investors over time.
Demand for Ether can easily increase with refined marketing and a unified value proposition.
— Tim Lowe, Chief Business Officer at Attestant
Lowe also sees diversification from Bitcoin as a catalyst for Ethereum’s growth. He notes that the asset underperformed against Bitcoin in 2024, with a 46.3% return compared to Bitcoin’s 121.4% return over the same period.
Bitcoin ETFs vs. Ether ETFs
The launch of spot Bitcoin exchange-traded funds (ETFs) in January 2024 was met with strong demand, pushing Bitcoin’s price to new highs within two months. In contrast, the launch of US Ether ETFs in July saw significantly less demand, leading to a more bearish view of the asset.
The $35.3 billion in inflows for Bitcoin ETFs versus $2.66 billion for Ether ETFs is a clear indicator of the market’s sentiment towards each asset.
— Markus Thielen, Head of Research at 10x Research
Duncan Upgrade: Too Little, Too Late?
Thielen also expresses skepticism about the Duncan upgrade, which reduced the network’s gas fees and allowed it to handle more transactions. He believes that the upgrade arrived six months too late, missing the peak of the memecoin rally and shifting market attention to the more cost-effective Solana alternative.
Pectra Upgrade: A Questionable Catalyst
The Pectra upgrade, due to be introduced in early 2025, has also raised concerns among analysts. Thielen notes that only two upgrades out of 19 have had a notable positive impact on price, and even those occurred during Bitcoin bull markets.
The three major Ethereum catalysts of 2024 have largely fallen flat, adding little value overall.
— Markus Thielen, Head of Research at 10x Research
Ether’s Price Outlook: Uncertain
While some analysts, like Cold Blooded Schiller and Dal, predict that Ether may stage a price breakout or retest the $3,000 level, others, such as MN Capital founder Michael van de Poppe, are more bullish on the asset.
I wouldn’t be surprised if $ETH / $BTC breaks through 0.04 in January.
— Michael van de Poppe, Founder of MN Capital
As we head into 2025, it’s clear that Ethereum’s performance is uncertain and may depend on various factors, including the network’s upgrades, market sentiment, and regulatory developments.
Conclusion
In conclusion, while some analysts predict a bearish outlook for Ethereum in 2025, others see potential for growth. As with any investment decision, it’s essential to conduct thorough research and consider multiple perspectives before making an informed decision.
Disclaimer
This article is for general information purposes only and should not be taken as legal or investment advice. The views expressed here are the author’s alone and do not necessarily reflect or represent the views of Cointelegraph.
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