Ethereum could surge to $6K by Q1 2025 as multiple bullish patterns emerge

Ethereum, which saw a significant increase in long-term holders in 2024, could potentially reach $6,000 in the first quarter of 2025, according to analysts.

In a December 29 jobCryptoBullet, which has over 152,000 subscribers, noted that Ethereum is forming a bullish pennant pattern on the ETH/USDT 1-day chart. He expects this pattern to end in the coming months, which could lead to a massive increase of up to $6,000 in the first quarter of 2025.

In technical analysis, a bull pennant pattern forms after an asset experiences an uptrend and generally indicates a potential continuation of the rally.

The analyst recalled the price action seen in May 2021, when ETH surpassed $4,000 for the first time after breaking a similar trend in the first quarter of that year.

Analyst James CryptoGuru predicted a similar price target for Ethereum based on a technical indicator.

He noted that ETH has formed a multi-month inverse head and shoulders bullish pattern throughout 2024, which is expected to end by early 2025. If ETH breaks out of this pattern, it could potentially reach $8,100.

Meanwhile, fellow analyst Jelle anticipates a major breakthrough for ETH, highlighting that Bitcoin’s dominance has broken from a multi-year trend. They pointed out that the last time this happened, the price of ETH quadrupled in about five months.

These experts’ optimistic predictions align with an increase in the number of long-term ETH holders – those who have held the asset for more than a year – from 59% in January to 75% by the end of 2024 In contrast, long-term BTC warrant holders fell from 70% to 62% during the same period, according to a December 30 study job from IntoTheBlock, citing information from its platform data.

Continued growth in long-term holders could help support ETH’s price rise as the asset heads towards 2025.

Another potential catalyst for an Ethereum rally in the first quarter lies in its historical performance patterns after the first quarters of the year marked by US elections and a Bitcoin halving cycle. According to CoinGlass data, the first quarters of 2017 and 2021 were among Ether’s best-performing quarters, with recorded gains of 518% and 161%, respectively.

Additionally, Ether spot exchange-traded funds have become a major growth engine, seeing inflows in 22 of the last 24 trading days and accumulating more than $2.5 billion, according to data from SoSoValue.

This continued momentum has fueled optimism, according to one enthusiastic ETH advocate. predict that Ether ETFs could attract more than $50 billion in net inflows by 2025.

Despite the bullish catalysts, the second-largest cryptocurrency could face some downward pressure due to selling activity among large holders.

According to data from ITB, the net inflow from whale holders decreased significantly from 220.88k ETH, valued at nearly $737 million on December 23, to just 14.45k ETH valued at nearly $48 million dollars on December 28.

The sharp decline in investment in Whales indicates a potential loss of confidence in the asset’s future gains among large holders. Such a trend could influence individual investorswho often follow the movements of these experienced market players.

At press time, Ether (ETH) was up 1%, trading at $3,413 per coin.