Ethereum has kicked off the new year with a strong performance, surging over 9% in just a few days. This rally has brought renewed optimism to the market, especially among analysts and investors who had grown concerned about Ethereum’s prolonged underperformance compared to Bitcoin. Over the past months, ETH struggled to maintain momentum, causing many to question its near-term potential.
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However, top analyst Daan recently shared an insightful chart that has shifted the narrative. According to Daan, Ethereum has historically shown significant activity during the first quarter of the year, even in periods where it lagged behind Bitcoin. This trend underscores Ethereum’s potential for a rebound as market dynamics shift in its favor.
While Ethereum’s price action is gaining strength, the next few weeks will be crucial. Investors are watching closely to see if ETH can sustain this momentum and reclaim dominance within the altcoin space. The market’s overall sentiment suggests that 2025 could be a pivotal year for Ethereum, with the Q1 trend potentially setting the tone for an impressive run ahead.
Ethereum Start To The Year Sparks Optimism
Ethereum has begun 2025 on an optimistic note, with investors and analysts watching closely to see if this momentum can sustain. While the start of the year has been strong, Ethereum’s performance will need to break away from past trends of underperformance relative to Bitcoin to truly thrive in the months ahead.
Top analyst Daan recently shared a detailed analysis of the ETH/BTC ratio on X, highlighting the historical significance of Q1 for Ethereum. According to Daan, Ethereum has often seen substantial action durin.g this period, even in years when it lagged behind Bitcoin.
During the previous bull cycle in 2020 and 2021, the ETH/BTC ratio experienced significant surges that coincided with the start of an alt season. This historical data suggests that Ethereum’s performance in Q1 could set the tone for broader market activity.
For Ethereum to build on this promising start, the ~0.04 level in the ETH/BTC ratio stands as a critical resistance point. A decisive break above this level could reignite investor confidence and potentially lead to significant gains. However, failure to sustain momentum or surpass key levels might cause Ethereum to…
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