Despite Ethereum showing weakness in the early part of the year, it has recently turned to an upward trend, solidifying its position as a leader in the altcoin market. Major cryptocurrency analyst Virtual Bacon presented Ethereum's core strengths and future prospects.
The altcoin market rose 15.59% in May. Over the past 30 days, Ethereum recorded a 52.1% return, Solana 29.7%, XRP 15.8%, and BNB 9.2%. However, in the last 24 hours, while Ethereum dropped 2.2%, XRP rose 3.6%, showing relative weakness.
Ethereum recorded consecutive declines from January to April 2025. It showed losses of -1.28% in January, -32.2% in February, -18.4% in March, and -1.58% in April. In contrast to Bitcoin's 50.96% increase since November 5th, Ethereum only rose 2.07%. However, it rebounded 36.3% in May, reaching $2,449.99.
The Ethereum/Bitcoin pair dropped 32.81% since January 1st but rebounded 28.25% after May 8th. Particularly, it surged 32.3% between May 8th and 10th. Virtual Bacon interpreted this as a rebound from a multi-year support line and a signal of the altcoin season.
Virtual Bacon cited four core strengths of Ethereum: decentralization, scarcity, legal recognition, and reliability. He emphasized that Ethereum is playing a leading role in stablecoin, real-world assets (RWA), and DeFi ecosystems, and is the only altcoin to receive spot ETF approval.
However, he analyzed that the Federal Reserve's quantitative tightening (QT) is hindering Ethereum's growth. He forecast that Ethereum would rise in the third or fourth quarter of 2025 when the Fed stops QT. He predicted that when Bitcoin reaches $200,000-$250,000, Ethereum would record $10,000-$12,000 by the end of 2025 or early 2026.
Currently, Ethereum is trading at 0.02396 BTC, and according to Fibonacci analysis, if it recovers the 0.382 Fibonacci level, it could rise 60% against Bitcoin, and reaching the 0.5 Fibonacci level could push the ETH/BTC ratio above 0.05.
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