After Bitcoin’s historic surge past $100,000, the question on everyone’s mind is clear: Will Ethereum catch the bullish wave and deliver its own explosive rally?
Despite a relatively subdued performance in 2024, Ethereum appears poised for a 2025 filled with potential breakthroughs. With the new year on the horizon, the return of Trump to the White House, and leadership shifts at the SEC and CFTC, a new era could be dawning for the altcoin landscape.
Among the myriad cryptocurrencies, Ethereum has solidified its position as more than just a digital asset: it is a foundational platform shaping the future of decentralized finance (DeFi) and the digital economy. So, what can we expect from ETH/USD?
Ether and a Favorable Political Environment
Ethereum’s prospects received a boost following the announcement that SEC Chairman Gary Gensler will step down on January 20, 2025. Gensler, known for his stringent regulatory stance on crypto, has led an aggressive campaign resulting in numerous lawsuits against companies in the sector. His impending departure has sparked optimism among investors anticipating a more relaxed regulatory framework under the re-elected Donald Trump.
President Trump has pledged to position the United States as a global crypto hub, with substantial changes to the regulatory landscape. Among these, the SEC could see a pro-crypto leader, with Summer Mersinger potentially taking the helm at the CFTC. There are also discussions in the White House about establishing a dedicated department solely for crypto policy, though this remains unofficial.
These developments signal a potentially transformative environment for cryptocurrencies, with Ethereum well-positioned to seize the opportunity.
Bitcoin Dominance Declines and Ethereum’s Role
Bitcoin’s dominance in the crypto market has decreased from 60% on November 20 to under 50% today, reflecting a growing interest in alternative cryptocurrencies like Ethereum. As a leading platform for decentralized applications (dApps) and smart contracts, Ethereum continues to attract attention. However, despite its innovations, ETH has underperformed relative to some other major cryptocurrencies.
What has slowed Ethereum’s growth, and could we see another "altseason" similar to previous years?
Although Ethereum’s year-to-date returns have lagged, the platform has achieved significant milestones in 2024, including the approval of spot ETFs and the Dencun upgrade, which enhanced its efficiency and scalability. These advancements underscore its continued relevance in the evolving crypto ecosystem.
A Possible Return of the Altcoin season
Historically, altcoins like Ethereum have occasionally outperformed Bitcoin, capturing significant market share during what’s referred to as an altcoin season. Could this phenomenon reemerge in 2025? Recent trends show altcoins gaining ground, with their collective market share increasing from 25% to 35%.
The resolution of the SEC lawsuits against Coinbase could also serve as a catalyst for the market.
A favorable outcome would not only benefit directly involved cryptocurrencies such as Solana, Cardano, and Polygon, but also indirectly bolster Ethereum by reducing regulatory uncertainty and boosting market confidence.
ETH/USD Technical Analysis
From a technical perspective, Ethereum is showing promising signs. ETH’s price has recently surpassed critical resistance levels, consolidating above the 200-period moving average. Key support currently lies around $2200, with significant resistance at $4000. Breaking past this resistance could pave the way for a rally toward the all-time high near $5000, buoyed by strong institutional and retail investor interest.
Momentum indicators such as the RSI suggest Ethereum is approaching overbought territory, a phase often marked by heightened volatility. While this could lead to profit-taking, in the crypto market it often signals increased market enthusiasm rather than a downturn.
A Promising Future for Ethereum
Ethereum is uniquely positioned at the intersection of favorable regulatory, technological, and market dynamics. The SEC leadership transition and the pro-crypto policies promised by the incoming administration could alleviate many of the regulatory barriers that have constrained the industry. Meanwhile, Ethereum’s ongoing network upgrades and growing institutional adoption further solidify its utility and market value.
Despite these positives, Ethereum faces challenges, including rising competition from so-called “Ethereum Killers.” These emerging platforms, offering alternative solutions, could dilute Ethereum’s dominance, potentially slowing its growth trajectory. Yet, Ethereum remains the flagship of altcoins, supported by its vibrant ecosystem, robust community, and innovative dApp development.
Original article published on Money.it Italy 2024-12-09 15:25:24. Original title: Non solo Bitcoin. Il prezzo di Ethereum è pronto a esplodere
