Market Experts Weigh In on Ethereum’s Prospects
As the crypto market enters a new year, investors are eagerly awaiting news on which assets will perform well. One of the most anticipated trends is the potential bull run in 2025, with some experts predicting that Ether (ETH) may not be the wisest investment choice.
10x Research’s Head of Research Predicts Underwhelming Returns
Markus Thielen, head of research at 10x Research, expressed his concerns about Ethereum’s performance in 2025. In a December 30 market report, he stated:
"While we appreciate Ethereum’s volatility, we believe it remains a poor medium-term investment and expect ETH to underperform BTC once again in 2025."
Thielen highlighted that one of the most important metrics to watch in 2025 will be the trend in active validators. He noted that the growth rate of validators had turned negative, dropping by about 1% over the past 30 days, raising concerns about the increasing risk of more validators exiting the network.
Thielen’s Concerns About Ethereum’s Demand
Thielen also expressed his skepticism about the demand for Ether outside of staking. He argued that a rise in unstaking seems logical, given that Ethereum lacks real demand outside of staking.
However, not everyone agrees with Thielen’s assessment. Attestant’s chief business officer, Tim Lowe, recently told Cointelegraph that demand for Ether can easily increase with refined marketing and a unified value proposition.
Lowe Sees Diversification from Bitcoin as a Catalyst
Lowe sees diversification from Bitcoin as a simple catalyst for Ethereum. He believes that investors are looking for alternative assets to invest in, and Ethereum’s unique features make it an attractive option.
Ethereum’s Performance Compared to Bitcoin
Ethereum’s performance has been underwhelming compared to Bitcoin. While Bitcoin is up 121.4% since January 1, 2024, Ether has clocked a 46.3% return over the same period, according to CoinMarketCap data.
The launch of spot Bitcoin exchange-traded funds (ETFs) in the United States and the subsequent strong demand helped push Bitcoin’s price to new highs within two months. In contrast, when US Ether ETFs launched in July, the demand was significantly less, leading to a more bearish view of the asset.
Bitcoin ETFs vs Ethereum ETFs
Bitcoin ETFs saw $35.3 billion in inflows across the year, while Ether ETFs reached $2.66 billion. Thielen attributed this difference to the lack of real demand outside of staking for Ether.
Upgrades and Catalysts: What’s Next for Ethereum?
Thielen is also skeptical about the upcoming upgrades to the Ethereum network, including the Duncan upgrade in March and the Pectra upgrade in early 2025.
He argued that these upgrades have largely fallen flat, adding little value overall. "Of the 19 upgrades so far, only two have had a notable positive impact on price, and even those occurred during Bitcoin bull markets," Thielen said.
Alternative Views: Bullish or Bearish on Ethereum?
Not all experts agree with Thielen’s assessment of Ethereum’s prospects. Pseudonymous crypto trader Cold Blooded Schiller said in a December 31 X post that Ether has been "rangebound" since December 25 and one of two scenarios is likely to play out:
"On the optimistic side, Ether might stage a ‘sweep and run’ to the upside, triggering a price breakout. Or it could break down to the Dec. 20 range low, potentially retesting the $3,000 level."
Echoing a similar scenario, pseudonymous crypto trader Dal said in a December 31 X post that Ether could go in one of two directions:
"Compressing hard, I think if we flip 3,554 and we go back to 4k if we can’t flip, I think we can sweep 3,102."
Bullish on Ethereum: MN Capital Founder Sees Breakout
MN Capital founder is bullish on Ethereum’s prospects. He believes that the ETH/BTC ratio will break through 0.04 in January.
At the time of publication, the ETH/BTC ratio was 0.03571, according to TradingView data.
Conclusion
The crypto market is known for its unpredictability, and Ethereum’s performance in 2025 is no exception. While some experts predict underwhelming returns, others see potential for growth. As investors, it’s essential to stay informed and make informed decisions based on your own research and risk tolerance.
Disclaimer
This article is for general information purposes only and should not be taken as investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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