Ethereum set for strong Q1 rally with potential $8K price target

Analysts predict Ethereum (CRYPTO:ETH) will outperform Bitcoin (CRYPTO:BTC) in the first quarter of 2025, fueled by renewed momentum and institutional interest.

Ethereum's 2024 performance, which saw a 47% gain without breaking above $4,000 for sustained periods, lagged behind Bitcoin’s 120% surge to a new all-time high.

However, expectations are now shifting in favor of Ethereum as Bitcoin remains in a consolidation phase.

"ETH generally sees a good amount of action in Q1. Even during the past few years during the downtrend against BTC," noted Crypto analyst "Daan Crypto Trades".

He highlighted the importance of the ETH/BTC ratio breaking the 0.04 level, as it currently stands at 0.035, based on TradingView data.

Ethereum community advisor Anthony Sassano is optimistic about ETH’s trajectory, predicting a price of $15,000 in 2025.

Sassano expects significant inflows from Ether ETFs, which he projects will reach $50 billion this year, alongside developments such as staked ETH products and increased participation by traditional finance institutions.

“Ethereum will turn 10 years old in 2025, and I’m very confident that this year will be Ethereum’s most bullish year yet,” he added.

Steno Research echoed these sentiments, projecting ETH to reach $8,000 in 2025, and analyst Ash Crypto stated, "IMO, ETH will have a face-melting rally in Q1, 2025," comparing trends to previous market cycles.

The anticipated Pectra upgrade, highlighted by Aave (CRYPTO:AAVE) founder Stani Kulechov, is also expected to boost Ethereum’s adoption.

Kulechov described the upgrade as a game-changer that will enable smart wallets to become more scalable while improving user experience and safety.

At the time of reporting, the Ethereum price was $3,452.19.