Ethereum (ETH/USD) had an impressive 2024, climbing 45% in value, despite not hitting new highs like Bitcoin.
A significant milestone was the introduction of Ethereum spot ETFs in July, several months after the SEC approved Bitcoin ETFs. While these ETFs didn’t immediately impact ETH prices, their growing popularity drove total net asset values above $12 billion, with daily inflows exceeding $100 million.
This surge in interest provided strong support for Ethereum during the latter half of the year and will continue to grow in 2025 as Ethereum has scheduled the major Pectra network upgrade in Q1, attempting to make the blockchain faster, cheaper, and more profitable for stakers.
As 2025 begins, Ethereum is maintaining its momentum, with the $3,000 level acting as a solid support. Market sentiment is cautiously optimistic, buoyed by expectations of a more pro-crypto stance from the new White House administration and SEC leadership.
Increased integration of Ethereum into traditional financial systems further bolsters its outlook. Analysts foresee a potential retest and breakout above the 2024 high of $4,100 in Q1 2025, with the possibility of reaching $5,000 if favorable conditions persist.
Ethereum Technical Analysis – The 200 SMA Keeps Buyers in Control As Lows Keep Getting Higher
Ethereum started life with a value below $1 in 2015 with the launch of the Ethereum platform by Vitalik Buterin and Joe Lubin, which has become the second-largest crypto network by market capitalization.
ETH continues to remain on an upward trend, indicating further bullish momentum in 2025, while in early 2025 it started the new year close to $4,000, and the first week of 2025 has started quite bullish, suggesting that Ethereum buyers will continue to remain in charge this year.
ETH has moved up in waves, climbing above $10 by 2016, where it stabilized for more than a year, until the first “gold rush” for cryptos started later that year, sending the value of Ethereum more than 100 times higher, with ETH/USD above $1,400 until the next major crypto rally which started late in 2020.
ETH/USD Chart Monthly – The 50 SMA Has Been the Ultimate Support Since 2020
2021 was a great year for digital currencies, keeping the Ether coin on a strong bullish trend, and 2024 was similar for digital currencies. ETH surged above $4,800 back then, getting pretty close to $5,000, which is the watermark level for this major crypto coin.
The crypto market reversed lower in late 2021, with Ethereum dipping below $1,000, however, there was no close below that major level and the 50 monthly SMA (yellow) turned into support, holding ETH/USD in numerous cases.
That moving average has been pushing the lows higher, thus keeping the uptrend going. In late 2023 the next bullish wave started for cryptocurrencies, and Ethereum surged higher again, gaining around 400% in value as the price climbed above $4,000 by March 2024.
The price retreated again during summer but the 50 monthly SMA held as support again, and the price remained above $2,000, forming two doji monthly candlesticks, signaling the next bullish move, which came in late 2024. However, Ethereum buyers were unable to push above the previous 2024 high, while Bitcoin printed a new record high above $100K.
Ethereum’s 2024 Performance Suggests Further Gains in 2025: Growth, Milestones, and Market Leadership
Although Ethereum didn’t achieve a new all-time high in 2024, it still delivered an impressive performance, ending the year $1,000 higher. This growth was fueled by improving on-chain metrics and a favorable shift in market sentiment.
Early in the year, the strengthening optimism around cryptocurrencies propelled ETH/USD beyond $4,000 during Q1. Later, significant events such as Donald Trump’s presidential win and the Ripple court victory against the SEC provided another wave of momentum, lifting Ethereum and the broader crypto market as the year closed.
Ethereum Daily Chart – Consolidating After the Bullish Move
Ethereum remains the dominant player in the decentralized finance (DeFi) and NFT sectors, supported by robust network activity and continuous ecosystem upgrades. Institutional interest in Ethereum is evident from $2.1 billion in inflows into ETH exchange-traded funds (ETFs) during December alone, driven by BlackRock’s ETHA, followed by Fidelity’s Ethereum ETF FETH, signaling confidence in its long-term potential. The new upgrades will attract further investment into the ETFs during 2025.
The network’s transition to proof-of-stake continues to pay dividends, with staking revenue surging, reflecting increased participation and further decentralizing the system.
Additionally, the resurgence of the NFT market, with rising demand for digital collectibles, solidifies Ethereum’s standing as the leading blockchain for NFTs. These factors, combined with steady ecosystem development, position Ethereum strongly for future growth in both adoption and market influence.
Ethereum Dencun Upgrade: A Leap Forward for Scalability and Efficiency
The Ethereum Dencun update, launched on March 13, 2024, following extensive testnet testing, brought some key advancements to enhance scalability, reduce costs, and heighten security.
Proto-Danksharding, a central feature of the upgrade, presented”blobs” for efficient data storage, increasing network capacity and boosting transaction speeds.
This particularly benefited Layer-2 rollups, which reported fee reductions of up to 90%, making transactions significantly cheaper for users. The update also optimized on-chain data handling and gas usage, reducing costs and improving resource efficiency.
Additionally, Ethereum’s Proof-of-Stake protocol was reinforced, enhancing security and cross-chain data integrity. Dencun marks a major step forward for Ethereum, addressing core challenges and solidifying its position as a leading blockchain platform.
Upcoming Ecosystem Developments and Ethereum’s 2025 Outlook
Rising ETF inflows suggest a positive outlook for Ethereum’s price trajectory, strengthening predictions of an ETH cycle peak during 2025. Despite the traditionally low liquidity around Christmas, Ether exchange-traded funds (ETFs) set a new monthly record in December, bolstering analysts’ expectations of a significant price surge.
Just five months after their July 2024 debut, cumulative net inflows into U.S. spot Ether ETFs exceeded $2.1 billion in December, marking a new milestone. This strong demand for Ether-based ETFs highlights growing investor interest and supports Ethereum’s potential for continued growth in the coming year.
Ethereum’s growth in 2025 is likely to be shaped by several key factors, including the continued roll-out of Ethereum 2.0 upgrades and advancements in scalability and efficiency.
Institutional adoption within the dApp ecosystem, decentralized finance (DeFi), and the potential approval of ETH-based ETFs by traditional finance players could further strengthen its position.
The growth of decentralized applications (dApps) and evolving global cryptocurrency regulations—particularly following changes in U.S. government leadership and the resignation of the former SEC chairman—are also poised to influence Ethereum’s trajectory.
Ethereum’s Next Major Upgrade: Pectra
Ethereum continues to face challenges with transaction fees, scalability, and user experience. The upcoming “Pectra” upgrade—short for Prague and Electra—aims to resolve these issues in two phases scheduled for 2025 and 2026. Building on previous updates like “The Merge” (2022) and “Cancun” (2024), Pectra focuses on improving usability, efficiency, and network capacity.
Key Innovations and Impact
Pectra introduces account abstraction, allowing users to pay gas fees with tokens like USDC instead of ETH, eliminating the need for small ETH balances. Third-party gas sponsorships may also lower costs for users.
The Ethereum Virtual Machine (EVM) will be enhanced for faster, cheaper smart contract execution. Staking improvements include raising the validator limit from 32 ETH to 2048 ETH and enabling flexible withdrawals (EIP-7002), streamlining operations for large validators and improving network efficiency.
Technical advancements include Verkle trees, which reduce storage needs and accelerate transaction processing, and Peer Data Availability Sampling (PeerDAS), which enhances Layer-2 scalability and data handling. Collectively, these changes will lower costs, improve scalability, and strengthen Ethereum’s position as a leading blockchain platform.
Ethereum Metrics 3 January 2025
- Circulating Market Cap:
- Valued at $436 billion.
- Total Ethereum Ecosystem Market Cap:
- Reached $1.03 trillion.
- Circulating Market Cap Dominance:
- Stands at 13.29%.
- ETH Spot Exchange-Traded Funds (ETFs):
- Recorded net inflows of $2.1 billion in December 2024.
- Decentralized Exchange (DEX) Transaction Volume for 2024:
- Ethereum led with $674 billion, representing a 46.3% year-on-year growth.
- Daily Ethereum Transactions:
- Averaging approximately 1.2 million transactions.
- Weekly transactions averaging around 9 million, well below the 11 million transactions in May 2021
- Monthly Trading Volume for December 2024:
- Totaled $22.82 billion.
- Annual On-Chain Spot Trading Volume for 2024:
- Reached $451.5 billion.
- Ethereum NFT Market:
- NFT transaction volume surged by 351%, totaling $885 million.
- ETH Stakers’ Income:
- Rose by 30% in 2024, reaching $342 million, reflecting increased staking rewards and network activity.
Conclusion: Ethereum Could Reach $5,000 in Q2 and $7,000 by End of 2025
Despite Ethereum’s strong performance in 2024, investors should remain mindful of broader cryptocurrency market sentiment and trend cycles. Regulatory developments could significantly impact Ethereum’s adoption and applications, potentially altering its competitive edge in regard to similar blockchains. For instance, emerging blockchains like Solana may present increasing competition in terms of speed and efficiency, challenging Ethereum’s dominance in the space.
Currently, Ethereum’s price remains within the $3,500-$4,000 range, which is significantly above the average staking deposit price of $2,380. This price level provides validators with solid returns on their investments, particularly if ETH’s value continues to rise.
These favorable conditions for validators and network participants could further bolster confidence in Ethereum as it navigates the evolving crypto landscape in 2025.
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