Ethereum
Ethereum vs Bitcoin – Here’s why analysts are divided about the 2025 bull market
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- Ethereum lagged behind Bitcoin with a weaker 2024 performance and tepid ETF demand
- Experts and traders feel differently about Ethereum’s future, with opinions ranging from bullish to cautious
Ethereum’s [ETH] potential in the 2025 bull market is under increasing scrutiny, with many questioning whether it can deliver strong gains. While Ethereum has long been a leader in blockchain, recent trends raise concerns about its ability to outperform in the next cycle.
For example – Markus Thielen, Head of Research at 10x Research, has expressed his own doubts, suggesting that it may lag behind Bitcoin this year. He pointed to a 1% decline in active validators over the past month, highlighting risks such as greater unstaking and weak demand beyond Ethereum’s staking ecosystem.
Thielen’s cautious outlook makes Ethereum a less attractive investment for those eyeing 2025’s rally.
Bitcoin vs Ethereum: The year gone by
Source: Coinmarketcap
Ethereum’s underwhelming performance in 2024 highlighted its mounting challenges. While Bitcoin surged by 121.4%, Ethereum lagged significantly, delivering only 46.3% returns. The stark difference can be attributed to the January 2024 launch of Spot Bitcoin ETFs, which attracted $35.3 billion in inflows and propelled Bitcoin to new heights.
In contrast, Ethereum ETFs, introduced in July, opened to tepid demand with a mere $2.66 billion. This disparity highlighted Ethereum’s struggle to keep pace with Bitcoin, particularly in light of increasing competition and a more bearish sentiment surrounding Ethereum’s ecosystem. As the 2025 bull market looms, these trends raise questions about Ethereum’s ability to reclaim its former dominance.
Thielen doubts upgrades and future impact
“While the possibility of a new catalyst cannot be ruled out, we wouldn’t be surprised if Ethereum struggles to deliver meaningful rallies next year.”
Thielen also criticized Ethereum’s recent network upgrades, particularly the Duncan upgrade in March, which sought to lower gas fees and boost transaction capacity. According to him, the upgrade came too late to take advantage of the memecoin surge, allowing rival platforms like Solana to gain significant ground.
He also expressed skepticism about the upcoming Pectra upgrade in 2025, pointing out that of Ethereum’s 19 previous upgrades, only two had a major effect on the price. In fact, both occurred during Bitcoin bull markets too.
Analysts divided over ETH’s potential
Despite concerns, some analysts remain optimistic about Ethereum’s potential. Tim Lowe, Chief Business Officer at Attestant, emphasized that improved marketing strategies and a clearer value proposition could drive greater demand for the asset. Lowe also pointed out that Ethereum’s diversification appeal compared to Bitcoin could attract more investors.
Traders hold varied opinions about ETH’s price trajectory. For instance – The pseudonymous trader Cold Blooded Schiller identified two scenarios – A breakout with upward momentum or a drop toward the $3,000 range. Likewise, trader Dal predicted a potential hike beyond $3,554 towards $4,000 or a dip to $3,102.
Finally, Michael van de Poppe, CEO of MN Capital, shared a bullish outlook and suggested that ETH may outperform Bitcoin in the coming months. He projected the ETH/BTC ratio to rise above 0.04 by January 2025, up from its level of 0.03667 at press time.
