According to a recent analysis, Ether is exhibiting signs of breaking out relative to Bitcoin in January 2025. This observation is based on the ETH/BTC ratio, which measures Ether’s strength against Bitcoin.
Current ETH/BTC Ratio and Past Performance
The current ETH/BTC ratio stands at 0.0356, as per TradingView data. Historically, when the ETH/BTC ratio has reached this level, it has often been a precursor to significant price movements in Ether. In fact, the last time the ETH/BTC ratio tapped 0.04 was on December 8, when Ether traded at $4,018, just above the psychological price level of $4,000.
Analyst’s Prediction: Altcoin Run and Consolidation
Michael van de Poppe, founder of MN Capital, shared his insights in a recent post on X (formerly Twitter). He stated that he wouldn’t be surprised if the ETH/BTC ratio breaks through 0.04 in January 2025. According to van de Poppe, this could lead to an "altcoin run" within the Ethereum ecosystem.
In his analysis, van de Poppe also predicts that while there will be increased inflows into Ether in January 2025, Bitcoin may experience outflows, resulting in its price consolidating. This consolidation could set off a chain reaction of events, leading to an altcoin run in the Ethereum ecosystem.
Historical Context and Current Trends
The ETH/BTC ratio has shown significant growth over the past month, with a 3.26% increase over the past 30 days (Source: TradingView). This upward momentum is further reflected in other top-performing tokens within the Ethereum ecosystem, such as Shiba Inu (SHIB) and Mantle (MNT), which have respectively risen by 7.10% and 3.32% in the past 24 hours.
Bitcoin Price Stagnation
Meanwhile, Bitcoin has continued to trade below $100,000 at $98,805, according to CoinMarketCap data. This milestone price was first reached on December 5.
Spot Ether ETFs: A Potential Outperformer?
Some analysts believe that spot Ether exchange-traded funds (ETFs) may outperform Bitcoin ETFs in 2025. Nate Geraci, president of ETF Store, stated that net inflows into ETH ETFs are currently on pace with gold ETFs but expects these inflows to accelerate from here.
Analysts’ Views: Underperformance and Future Growth
Pseudonymous crypto trader Brent echoed a similar sentiment, posting on X (formerly Twitter) that "ETH is the most under-owned asset in the world. Study what happens to a ball forcibly held underwater." This statement highlights the potential for Ether to experience significant price growth as more investors become aware of its undervalued status.
Not long ago, a crypto analyst suggested that Ether’s underperformance against Bitcoin may be nearing its end. Benjamin Cowen, founder of Into The Cryptoverse, stated on December 4 that he believes "the ETH/BTC collapse is over (or nearly over), and it should go higher over the next 6-12 months."
Conclusion
The data and analyst opinions presented in this article suggest that Ether may be on the verge of a significant price breakout relative to Bitcoin in January 2025. As investors become increasingly aware of Ether’s undervalued status, we can expect to see increased inflows into ETH ETFs and potentially an altcoin run within the Ethereum ecosystem.
Disclaimer
This article is for general information purposes only and should not be considered as investment advice. The views expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
