ETH Performance and Market Outlook
- ETH has gained 195% against BTC since April, indicating a favorable environment for “altseason.”
- Bullish technical indicators suggest that the ETH price could reach $12,000 this cycle.
After hitting all-time highs above $4,950 on Sunday, Ether’s (ETH) price has since retraced by over 12%, landing at $4,300. Despite this decline, numerous data points indicate that there is still potential for ETH price to increase in 2025.
Institutional interest in ETH has recently surged, bolstered by record-breaking ETF inflows and the adoption of corporate treasuries.
US-based spot Ethereum ETFs have experienced unprecedented demand, with single-day inflows reaching a record $1.02 billion on Aug. 11, accumulating over $13.7 billion in net inflows since launching in July 2024.
These investment products continue to attract significant capital, drawing $39.1 million in net inflows on Thursday, marking six consecutive trading days of inflows, according to data from Farside Investors.
Inflows into ETH ETFs have notably outpaced Bitcoin ETFs, with 10 times more capital being funneled into Ether products, reflecting the current capital shift towards Ethereum.
Moreover, Ether is increasingly viewed as a corporate treasury reserve asset, with BitMine Immersion Technologies acquiring an additional 78,791 ETH worth $354.6 million. Following this latest purchase, the company’s total ETH holdings amount to approximately $8 billion, establishing it as the largest corporate holder.
Part of Ether’s potential for further growth is rooted in expectations that institutional adoption will continue to rise, as traders set their sights on a significant target of $7,000 for the next milestone in ETH pricing.
Ethereum’s network fundamentals appear stronger than ever, with the average monthly transactions rising from 31.7 million in July to 49.8 million, representing a 57% increase, based on data from Nansen.
Active addresses increased by 24% to 9.6 million during the same timeframe.
Weekly DEX volumes peaked at an all-time high of $39.2 billion in the second week of August, according to data from DefiLlama.
Growing transaction activity, an increase in active addresses, and record DEX volumes all indicate a rising demand for Ethereum.
The total value locked (TVL) in Ethereum’s DeFi protocols remains dominant at $92 billion, capturing 60% of the market share.
ETH has risen 195% since April, also more than doubling its price in Bitcoin (BTC) terms. During the same period, BTC has rallied 47%, while other major layer 1 tokens, including BNB Chain’s BNB and Solana’s SOL, have surged by 55% and 98%, respectively.
The ETH/BTC pair also saw a surge since April, reaching a 12-month high of 0.043 BTC on Aug. 24.
This rally prompted the MACD to show a bullish crossover on the ETH/BTC monthly chart for the first time in five years.
Historically, the last occurrence was in June 2020, which was followed by a 270% rise in the ETH/BTC trading pair, culminating in a 2,300% rally in ETH/USD to a peak of $4,867 in November 2021.
A comparable scenario could unfold now, possibly leading to a steep rally and initiating a so-called altcoin season, with many analysts anticipating a typically bullish Q4.
ETH displayed resilience after breaking above a rounded bottom chart pattern on the daily chart. The price remained above the neckline of the pattern at $4,100, affirming that the breakout is still valid.
The projected target for the rounded bottom chart pattern is estimated at $12,130, indicating a potential 180% increase from the current price.
Others, like Trader Jelle, mention that a bullish “megaphone” pattern on the weekly chart suggests ETH may resume its upward trend toward $10,000.
This bullish megaphone has a target of approximately $10,000.
This aligns with targets previously identified by other market analysts, including Standard Chartered’s Geoffrey Kendrick, who anticipates ETH reaching at least $7,500 by the end of the year.
Other technical analyses suggest that ETH’s price could rise as high as $20,000 in the upcoming months.
This article does not constitute investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research prior to making any decisions.
