- Ethereum is currently leading the market's recovery.
- While Bitcoin and XRP hit new highs, Ethereum has yet hit the mark.
- Analysts say that should change soon.
Is it finally Ethereum’s time to shine?
After a spate of liquidations this week, crypto markets have bounced back — but few rebounded as high as Ethereum.
While Bitcoin rose 2.5% over the past day, and Ethereum jumped 6%, according to CoinGecko. One analyst now says the sky is clear for a new all-time high.
“The cogs and bolts are in place,” Iliya Kalchev, an analyst at Nexo, told DL News. “Ethereum could catapult beyond $5,000 as early as the start of 2025.”
The latest crypto rally — sparked in part by Donald Trump’s US election win — has seen several cryptocurrencies, including Bitcoin, Solana and even XRP, hit new all-time highs.
Since Trump swept the elections last month, Bitcoin has risen 62%. Solana and XRP rallied 59% and 430%, respectively.
Though Ethereum rose 79% during that period, it still hasn’t hit its all-time high of $4,800 in 2021.
The great Ether rotation
Carlos Guzman, an analyst at market maker GSR, says Ethereum has an edge.
“ETH has a big advantage in that it’s the only token besides BTC to have a US ETF,” he told DL News.
“As traditional investors allocate more to crypto… they will look to ETH as a natural alternative.”
BlackRock and Fidelity, two of the largest providers for spot Ethereum exchange-traded funds, are already gearing up for that rotation.
Since December 8, both have acquired more than $500 million of Ethereum, according to Arkham Intelligence.
Monetary policy in the US also favours risk-on assets, like cryptocurrencies.
After new inflation data on December 11 showed consumer prices were still rising in November, market watchers now put a 96% chance of a quarter-point cut at the Federal Reserve’s next meeting on December 18.
Crypto investors are already taking note.
The number of outstanding options contracts in Ethereum, dubbed open interest, on the Chicago Mercantile Exchange just hit a new record. That signals enthusiasm for the cryptocurrency, said Kalchev.
“Robust liquidity, optimism around unfolding regulatory developments, and capital rotation within the crypto market, further support ETH’s price momentum,” said Kalchev.
Liam Kelly is a Berlin-based reporter for DL News. Got a tip? Email him at liam@dlnews.com.