Crypto: Why Ethereum Might Disappoint Again In 2025

The end-of-year celebrations have not been kind to Ethereum: the $4,000 mark remains out of reach, even in the wildest dreams of investors. With such a hesitant start to 2025, experts are questioning. While Bitcoin seems ready to roar, Ethereum struggles to convince, and the outlook isn’t particularly bright. Why this growing gap? Analysis and debates.

Bitcoin vs Ethereum: The Gap Widening

Bitcoin, the undisputed king of cryptos, dominated 2024 with an impressive rise of 121.4%. In contrast, Ethereum seems to play in the minor leagues, posting only a modest 46.3% during the same period.

This disparity is partly explained by the success of Bitcoin ETFs in the United States, attracting over $35 billion in investments compared to only $2.66 billion for Ethereum ETFs.

The experts at 10x Research, like Markus Thielen, are unequivocal: Ethereum will not be able to compete with Bitcoin in the immediate future.

“We believe that the volatility of Ethereum makes it unsuitable for medium-term investment,” he explains.

Additionally, there is the stagnation of active validators, with a 1% drop over the last 30 days, a worrying signal for a network expected to be at the forefront of innovation.

However, all is not lost. Some, like Tim Lowe from Attestant, believe that a strategic positioning and refined marketing could change the game. But in the face of Bitcoin’s robustness, the challenge seems colossal.

Key figures to remember:

• Bitcoin price: +121.4% since January 2024;
• Ethereum price: +46.3%;
• ETF flows: Bitcoin $35.3 billion, Ethereum $2.66 billion.

Crypto Market: The Challenges Facing Ethereum in 2025

The crypto market remains a jungle where only the best strategies survive. In 2024, Ethereum bet on updates like the Duncan upgrade to reduce fees and increase network capacity. But according to Thielen, these initiatives often come “too late,” missing opportunities like the craze of memecoins.

As for the Pectra upgrade expected in 2025, the expectations are limited:

“Out of 19 updates, only two have actually had a significant impact on the price.“

The prevailing pessimism does not prevent some traders like Michael van de Poppe from staying optimistic. In a recent tweet, he predicts a recovery of Ethereum against Bitcoin, with an ETH/BTC ratio potentially above 0.04 as early as January.

Wouldn't be surprised if $ETH / $BTC breaks through 0.04 in January.

Inflow in $ETH, outflow in $BTC.

Consolidation in Bitcoin –> #Altcoin run in Ethereum ecosystem.

— Michaël van de Poppe (@CryptoMichNL) December 24, 2024

But for other analysts, the future remains unclear. “Compressing hard, Ethereum could reach $4,000… or plunge back to $3,000,” says trader Dal.

The real test for Ethereum will lie in its ability to attract new investors and meet the real needs of the market. Failing that, altcoins like Solana could easily steal the show.

In conclusion, the chances that Ethereum will reach $5,000 this year are slim. But with a new year beginning, could the story still surprise? Or will the expected records remain out of reach?