According to a recent analysis by crypto analyst Michael van de Poppe, Ether (ETH) is showing signs of breaking out relative to Bitcoin (BTC) in January 2025. The ETH/BTC ratio, which measures the relative strength of Ether compared to Bitcoin, has been steadily increasing over the past few weeks.
Current ETH/BTC Ratio
The current ETH/BTC ratio stands at 0.0356, a significant increase from its recent lows. This suggests that investors are becoming more optimistic about Ether’s prospects in comparison to Bitcoin.
Van de Poppe’s Prediction
In a recent post on X (formerly Twitter), van de Poppe predicted that the ETH/BTC ratio could break through 0.04 in January, which would be a significant milestone for Ether. He also noted that this breakout could set off an "altcoin run" in the Ethereum ecosystem.
Historical Context
The last time the ETH/BTC ratio tapped 0.04 was on December 8, when Ether traded just above the $4,000 psychological price level at $4,018. This suggests that a similar breakout could lead to increased investor interest and potentially higher prices for Ether.
Impact on Ethereum Ecosystem
Van de Poppe’s prediction is consistent with his previous analysis, which suggested that 2025 would be a year of significant growth for the Ethereum ecosystem. He noted that while Bitcoin may experience outflows in January, leading to its price consolidating, there will be more inflow into Ether, setting off an "altcoin run" in the process.
Altcoins on the Rise
In addition to Ether’s strong performance relative to Bitcoin, other altcoins in the Ethereum ecosystem are also showing signs of life. Shiba Inu (SHIB) and Mantle (MNT), the second and third-largest tokens outside of stablecoins, have respectively risen 7.10% and 3.32% in the past 24 hours.
Bitcoin Price Action
Despite Ether’s strong performance relative to Bitcoin, the king of cryptocurrencies continues to trade below $100,000 at $98,805, according to CoinMarketCap data. It first reached this milestone price on December 5.
Analysts Eye Spot Ether ETF Outperformance
Some analysts are predicting that spot Ether exchange-traded funds (ETFs) may outperform Bitcoin ETFs in 2025. Nate Geraci, president of ETF Store, noted that "net inflows into ETH ETFs are currently on pace with gold ETFs, but I expect inflows to accelerate from here."
Why Ethereum Maxis Say ETH Will Be the Comeback Kid
Pseudonymous crypto trader Brent echoed a similar sentiment, posting on X that "ETH is the most under-owned asset in the world. Study what happens to a ball forcibly held underwater." This suggests that investors may be overlooking Ether’s potential for growth.
Is the ETH/BTC Collapse Over?
It comes not long after a crypto analyst said that Ether’s underperformance against Bitcoin may be nearing its end. Benjamin Cowen, founder of Into The Cryptoverse, wrote to X on December 4 that he thinks "the ETH/BTC collapse is over (or nearly over), and it should go higher over the next 6-12 months."
Conclusion
Ether’s strong performance relative to Bitcoin in January 2025 suggests that investors are becoming more optimistic about Ether’s prospects. While Bitcoin continues to trade below $100,000, Ether may be on the verge of a breakout, potentially leading to increased investor interest and higher prices. Analysts are predicting that spot Ether ETFs may outperform Bitcoin ETFs in 2025, adding to the growing optimism surrounding Ethereum.
Market Outlook
The market outlook for 2025 is looking increasingly promising for Ethereum investors. With Ether showing signs of breaking out relative to Bitcoin, and other altcoins on the rise, it’s clear that investors are becoming more optimistic about the prospects of the Ethereum ecosystem.
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