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Ethereum makes the headlines again as it transcends a period of glory. Recently, the asset has broken the $3,300 mark, with a rise of 0.30% in only a day. The second-best crypto in the market follows the trend set days earlier, with Bitcoin losing ground and seeing its price constantly drop. The latter signals a bearish trend for the market. This is a reason why Ethereum sees the scales tilt in its favor when it comes to long-term holders’ preferences. Over 73% of ETH addresses belong to those willing to stick to their investments for an extended period. Interestingly, this figure overtakes the 60 percent representing the long-term holders of Bitcoin. As expected, the ETH price chart is poised to fluctuate further as the market’s volatility holds on.
What’s with this rising tendency to keep ETH for extended periods, and how is the market leader left in the dark? What should investors and aspiring crypto buyers learn to better their decision-making?
An overview
Recent studies published by IntoTheBlock disclose that ETH holders’ confidence in the asset is on the rise. They are inclined to stick with their assets for long enough to evade inflation-related losses and create some profits. According to the on-chain analytic group, the trend could go on until Ethereum gets close to its all-time high (ATH) of $4,891 breached in November 2021. Many investors believe that the leading altcoin can breach this level and cost $8,800 in this year’s first quarter, out of which a large share is represented by hoDlers (aka long-term holders).
On a techie note, the asset has surpassed long-term barriers, disclosing an upward trend. More investors are funneling money into it, partly driven by the new number of Ethereum wallets that rose to 130K in 2024 last month. The news suggests more confidence and trust in the market. The rise was sparked mainly before and after Ethereum saw its own ETF go live, months after the Bitcoin ETF broke into the market.
Previous findings from the publisher showed that ETH’s hoDl percentage hit 75% by last year’s final, up from 59% at the beginning of the year. Consequently, Bitcoin’s share of hoDlers kept a consistent downward trend, falling from around 70% to 62%. And now, Bitcoin’s Funding Rate, the indicator disclosing the demand generated within the derivatives market, hasn’t risen. For all these reasons, you want to gain a good understanding of crypto before jumping on any trend.
Vigilance is key
Whether you believe that the asset is close to a new top or are skeptical, it’s important to do your due diligence and stay on top of trends to avoid failing investments. Do follow the widespread advice of investing only what you can afford to lose, as crypto is known for being extremely volatile and subject to abrupt spikes or drops. There are a few investment strategies to look into before determining which one suits your investment inclination, as well as tools and apps to come to grips with price movements. A profit-taking behavior emerging among Ethereum possessors will likely lead to a decreased ratio favoring the ruling altcoin.
It’s helpful to note that a similar trend of long-term Ethereum holders steadily amplified throughout last year, too, bringing about a loss of interest in Bitcoin. This caused the number of Bitcoin wallets to drop. Yet, Bitcoin breached a new ATH this year when it overcame the $109K level. This is only an example that highlights the unpredictable and volatile nature of the sector, so remain vigilant.
Predictions envisage ETH close to the new ATH
Market forecasts and analysis suggest Ethereum could be near its ATH as it prepares for a rise of 30% by the beginning of this year. The top altcoin keeps consolidating its standing in the international crypto landscape. This year is shaping up to be an extraordinary period for the second-best crypto by market cap. This comes after the market expansion pushed its growth to 40%.
With a forecast that positions Ethereum’s price at more than $3,5K by the month’s end, some forecasters suggest that ETH might breach the $4K mark by January’s final, though. This imagined performance is driving investors’ enthusiasm. According to media house CoinCodex, the asset’s consolidation phase at about $3K might pave the ground for a fast rise in value. It’s important to note that such milestones fit into a larger context of bullishness for the crypto market. This is prompted by the improved dynamics associated with the green light received by exchange-traded funds within the U.S. and institutional investors’ spiking interest in digital currency.
On another note, medium-term predictions suggest that ETH could hit a $6,559 price by spring, triggered by an “altcoin season” that industry analysts think could begin in April. Such a development could be made possible by the emergence of a bull market, where ETH would turn into one of the best assets by performance. Much of the thrill is generated by historical patterns and trends. For instance, history showed that Q1 is particularly good for the leading altcoin. Ethereum tended to push the altcoin market up and drive better altcoin performances.
During the first ten days of January, the altcoin lost 3.42%. Yet, experts and analysts are optimistic that the downward trend will see a reversal in the coming week, especially as spring nears. From a long-term perspective, analysts believe that Ethereum could hit a massive $7K by the end of 2025. Such a beneficial scenario wouldn’t be just a milestone for Ethereum but a win for the whole market in its trial to mature and become regulated in more countries. This would equally indicate the emergence of a bull market.
Endnote
Ethereum (ETH) is on a promising path, and experts anticipate it could bring about a bull market in 2025. With an encouraging start to the year and a long-term holding ratio that favors it instead of Bitcoin, it’s safe to say that some expectations are well founded. If you want to participate at the altcoin party, ensure you tread mindfully.
