For a long time, Ethereum (ETH) has been viewed as one of the most potentially profitable blockchain platforms in the cryptocurrency sector.
Recent developments, however, suggest that its future might be even more favorable in 2025. The market has faced some bumps in the road lately, including the hack of one exchange platform, Bybit. Yet a number of fundamental factors seem to be pushing ETH prices upward. And both technical and macroeconomic indicators appear to be backing the case for a good price rally. Increasingly, Ethereum’s framework and its growing dominance seem likely to translate into even greater returns for investors in the near term.
The Bybit hack, which resulted in a large-scale breach and the laundering of hundreds of thousands of ETH, was one of the most significant concerns for Ethereum and the larger crypto market. Nevertheless, the price of Ethereum has stayed stable. On-chain and market data also appear stable, showing no real sell-off of ETH in the aftermath of the incident. While selling from exchanges can create downward pressure on a coin’s price, and while the ETH offloads that happened with the Bybit hack could exert such pressure, it’s important to remember that these offloads typically take time and don’t create an immediate, visible impact on heavily traded coins like ETH.
Furthermore, institutional and large investor OTC sales, used to avoid impacting market prices, have not pushed Ethereum’s price down much. Pushing large amounts of currency onto the market would normally cause a currency’s price to dip, yet the opposite has happened with Ethereum. This suggests that there is ample buy-side liquidity beneath Ethereum’s price and that, as in the case with the sale of a billion dollars worth of Bitcoins back in 2014, Ethereum’s market has absorbed the selling pressure without any significant price drops.
One more reason to be optimistic about ETH is its rising importance in the stablecoin market. According to the latest numbers, Ethereum holds 56% of the total stablecoin market cap. This is quite a big deal, as stablecoins—the value of which is tethered to that of a fiat currency, such as the U.S. dollar—play an essential role in the cryptocurrency ecosystem. They are used for trading, saving, and sending money across borders (remittances). And in these activities, stablecoins are “doing their thing” as a cryptocurrency.
Considering 2025, we see plenty of potential for expanding Ethereum’s role, especially with the possible regulatory shifts in the U.S. under President Trump. With crypto regulations possibly becoming more favorable, we think more companies will look to leverage ETH-based stablecoins and smart contracts, key use cases for Ethereum. That could pump up demand for both the platform and the native token, which would likely drive adoption and push the price higher.
The approval of an ETH spot exchange-traded fund (ETF) represents significant regulatory advancement for Ethereum. An Ethereum ETF offers a traditional, secured, and regulated route for investors to gain exposure to Ethereum. “Exchange-traded funds have long been a popular investment vehicle in traditional markets. Their introduction into the crypto space is expected to open up the floodgates for institutional investment.”
Institutional adoption could significantly increase Bitcoin and Ethereum prices, driven in part by ETF approval and growing interest from large investors. This is what could diversify crypto’s investor base and, as a result, pump capital into the large-cap tokens. Because both Bitcoin and Ethereum have increased in price in much shorter timeframes, it’s also very possible that these institutions could help set up the next “Large Cap Token altseason.”
In the end, the information connected to whale activity in Ethereum points to the likelihood that plenty of big investors continue to build up their ETH positions, even in the current environment of heightened price volatility. One indicator of this is the balance of wallets holding between 10,000 and 100,000 ETH. Over the past year, those wallets have seen their average balance grow by 24%.
Currently, the Ethereum price level is near the cost basis of many of the addresses that have been amassing ETH. This implies that holding Ethereum for the long term is increasingly becoming a no-brainer. If Ethereum’s price were to start rising in the near future again, then these patient accumulation addresses—presumably also with some quite wealthy Ethereum holders in the mix—could trigger some considerable buying action on the way up.
Although recent market challenges have some investors worried, Ethereum’s chances for 2025 appear to be as good as ever. Why?
— There is little significant selling pressure from traders worried about the recent Bybit hack.
— Ethereum is the king of the stablecoin market.
— The SEC is soon going to be dominating the stablecoin conversation—most likely in a favorable manner for Ethereum.
— Ethereum whales are not selling.
— And regulatory conditions are becoming more favorable for the whole crypto space.
Although the cryptocurrency market can be quite volatile, Ethereum’s fundamentals are strong. The performance of Ethereum should be watched closely by both traders and investors, as it is likely to remain a significant driver and a key player in the cryptocurrency ecosystem for the foreseeable future. A combination of technical factors and a supportive macroeconomic backdrop bodes well for Ethereum’s continued performance, with a potential breakout coming in 2025.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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