As the crypto market continues to evolve, Ethereum (ETH) has been a topic of discussion among analysts and investors. With the asset’s performance in 2024 being less than stellar, some experts are questioning whether Ether is a wise investment choice for a potential bull run in 2025.
Ethereum May Not Be the Best Choice for a Bull Run
Markus Thielen, head of research at 10x Research, recently shared his views on Ethereum’s prospects in a December market report. According to Thielen, Ether may not be the most promising investment choice for a bull run in 2025, as it may deliver underwhelming returns compared to Bitcoin (BTC).
While the possibility of a new catalyst cannot be ruled out, we wouldn’t be surprised if Ethereum struggles to deliver meaningful rallies next year.
Thielen’s Stance on Ethereum
In his report, Thielen emphasized that Ethereum remains a poor medium-term investment and expects ETH to underperform BTC once again in 2025. He also stated that the growth rate of validators had turned negative, dropping by about 1% over the past 30 days, raising concerns about the increasing risk of more validators exiting the network.
A Rise in Unstaking is ‘Logical’
Thielen argued that a rise in unstaking seems logical, given Ethereum’s lack of "real demand" outside of staking. However, others may not agree with this statement. Tim Lowe, chief business officer at Attestant, recently told Cointelegraph that demand for Ether can easily increase with refined marketing and a unified value proposition.
Demand for Ether Can Increase
Lowe pointed out that diversification from Bitcoin is a simple catalyst for Ethereum’s growth. He believes that Ether can accrue more investors over time if it has a clear and compelling value proposition.
Ethereum Underperformed Against Bitcoin in 2024
According to CoinMarketCap data, while Bitcoin is up 121.4% since January 1, 2024, Ether clocked a 46.3% return over the same period. This underperformance can be attributed to several factors, including the launch of US spot Bitcoin exchange-traded funds (ETFs) in January and the relatively lower demand for Ether ETFs.
The Duncan Upgrade: A Missed Opportunity?
Thielen also expressed skepticism about the Duncan upgrade, which reduced the network’s gas fees and allowed it to handle more transactions. However, he believes that this upgrade arrived six months too late, missing the peak of the memecoin rally.
The Pectra Upgrade: Another Uncertainty
Thielen is also skeptical of the upcoming Pectra upgrade, which is due to be introduced in early 2025. He noted that only two upgrades out of 19 have had a notable positive impact on price, and even those occurred during Bitcoin bull markets.
Ethereum’s Price Remains Uncertain
While some analysts are bearish on Ethereum’s prospects, others remain uncertain about the asset’s price movement in 2025. Pseudonymous crypto trader Cold Blooded Schiller said that Ether has been rangebound since December 25 and one of two scenarios is likely to play out:
- Ether might stage a "sweep and run" to the upside, triggering a price breakout.
- Or it could break down to the December 20 range low, potentially retesting the $3,000 level.
Two Scenarios for Ethereum’s Price Movement
Pseudonymous crypto trader Dal echoed a similar scenario:
- If Ether flips $3,554 and goes back to $4k, it means that the price has broken out.
- However, if it can’t flip, it might sweep $3,102.
Michael van de Poppe’s Bullish View
MN Capital founder Michael van de Poppe is more bullish on Ethereum’s prospects. He believes that Ether is showing signs of breaking out relative to Bitcoin in January 2025.
Conclusion
Ethereum’s 2025 prospects remain uncertain, with some analysts being bearish and others remaining optimistic. While Thielen expects ETH to underperform BTC once again, Lowe points out that demand for Ether can increase with refined marketing and a unified value proposition. Ultimately, the crypto market is inherently unpredictable, and investors should be prepared for any outcome.
Disclaimer
This article is for general information purposes only and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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