As the crypto market looks toward 2025, Ether has sparked debates among analysts regarding its potential for meaningful returns compared to Bitcoin (BTC). Markus Thielen, head of research at 10x Research, has expressed skepticism about ETH’s medium-term investment appeal, citing concerns over underperformance and diminishing network activity.
In a Dec. 30 market report, Thielen stated that while Ether’s volatility could attract traders, it might struggle to deliver significant rallies. He emphasized, “We believe it remains a poor medium-term investment and expect ETH to underperform BTC once again in 2025.”
Thielen pointed to Ethereum’s validator growth rate, which turned negative over the past 30 days, dropping by about 1%. He warned that a rise in unstaking could signal declining demand outside of staking. Moreover, Thielen criticized Ethereum’s latest network upgrade, calling it a missed opportunity.
“The Duncan upgrade in March, which reduced gas fees and increased transaction capacity, arrived six months too late to capitalize on the memecoin rally,” Thielen added.
Mixed Opinions on Ether Price Trajectory
Not all analysts share Thielen’s bearish outlook. Tim Lowe, chief business officer at Attestant, believes Ethereum could attract more investors with refined marketing and a clear value proposition. He suggested that diversification away from Bitcoin could serve as a catalyst for ETH’s growth.
However, Ether performance in 2024 paints a challenging picture. While Bitcoin surged 121.4% year-to-date, Ethereum managed only a 46.3% return, according to CoinMarketCap data. Bitcoin ETFs dominated inflows with $35.3 billion, dwarfing the $2.66 billion seen by Ether ETFs.
Pseudonymous traders offered contrasting views on ETH’s short-term prospects. Some anticipate a breakout above $3,554, while others foresee a dip to $3,102. Meanwhile, Michael van de Poppe, founder of MN Capital, struck a more bullish tone, predicting ETH/BTC could rise to 0.04 by January 2025.
A Divided Path Forward
As Ether navigates these mixed signals, its future in 2025 remains uncertain. Analysts like Thielen warn of underwhelming performance against Bitcoin, while others see room for growth through improved adoption and market conditions. With the ETH/BTC ratio at 0.03571 at publication time, the market appears poised for potential shifts.
For Ethereum investors, 2025 will likely hinge on a balance of network innovation, market sentiment, and broader adoption trends.
