Ether (ETH), the second-largest cryptocurrency by market capitalization, has a remarkable history of performance during the first quarters of the year. Historical data reveals a consistent trend of significant price gains for ETH at the start of each year, perhaps laying the groundwork for another rally in Q1 2025. This trend is supported by several factors, including increasing accumulation levels and an influx of capital into spot Ethereum exchange-traded funds (ETFs), which may serve as indicators of ETH’s potential for a Q1 rally.
Data sourced from Coinglass reveals Ethereum’s impressive performance in the first quarters of previous years. The cryptocurrency gained 68.68% in Q1 2024, 71.77% in Q1 2023, 103.17% in Q1 2021, and an astonishing 539.96% in Q1 2013. However, it’s important to note that the first quarters of 2022, 2020, 2018, 2016, 2015, and 2014 saw bearish trends. Despite this, the second and fourth quarters have consistently been bullish for ETH, with the cryptocurrency surging 47.28% in Q4 2024.
The ongoing accumulation of ETH points to a promising future for the cryptocurrency. The balance of ETH on accumulation addresses has been on a steady rise as investors take advantage of the recent dip in the cryptocurrency’s price. Over the last two weeks, Ether’s price has dropped by 14%, hitting a low of $3,100 in December. As of now, it’s trading at $3,417.29, down 30.17% from its all-time high of $4,891.70.
Data from IntoTheBlock further bolsters this promising outlook. The total percentage of long-term ETH holders has risen from 59% in January to a considerable 75% by the end of 2024. This indicates a growing demand for Ether, suggesting that investors could see Ether breaking the $4,000 price level in the near future, especially under the administration of new president, Donald Trump.
The market capitalization for ETH currently stands at $410 billion, with ETH holding a market dominance of 12.5%. SoSoValue data reveals that the digital asset’s spot ETFs witnessed $47.77 million in inflows on Friday, driving the cumulative total net inflow for spot ETH ETFs to an impressive $2.68 billion.
The Relative Strength Index (RSI) for ETH is currently at 55.08, suggesting that bulls still hold sway over the cryptocurrency’s price action. The positive gradient of the line indicates that ETH bulls might soon make a move to break through the $4,000 price level.
These trends and indicators make for a positive start to 2025 for Ether. However, as with all investments, potential investors should exercise caution and conduct their due diligence before making a commitment.