Ethereum’s (ETH) 2024 Recovery Set Stage for Potential New All-Time High in 2025

Key Takeaways

• Ethereum fell short of its all-time high in 2024.
• Despite a 45% increase in 2024, Ethereum didn’t break new price records.
• Can Ethereum finally break above $5,000 in 2025?

Ethereum’s (ETH) 2024 performance left many underwhelmed. Despite a 45% increase, the second-largest cryptocurrency failed to break its all-time high of $4,779, reaching a high of only $4,107 in December—nearly 16% below its previous peak.

Though Ethereum’s 2024 journey might be viewed as disappointing, the asset showed signs of momentum late in the year.

The late rally in December helped ETH close the year on a high note, sparking optimism for 2025. Combined with growing exchange-traded fund (ETF) inflows, Ethereum is hinting at a potentially bullish 2025.

ETH Price Bounces

The recent bounce in Ethereum’s price signals that it may be preparing for a breakout.

ETH has risen in the past two weeks, pushing past the resistance trendline of its previous ascending parallel channel.

This breakout followed a lengthy two-year period where Ethereum traded within that channel before finally moving above it in early 2024.

Ethereum is now testing the $4,000 resistance level, an area that has previously rejected the asset’s price multiple times throughout 2024. If Ethereum can break this barrier, it could be poised to reach new all-time highs.

Technical indicators for Ethereum are showing bullish signs.

Both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are rising and are currently above their bullish thresholds at 50 and 0, respectively.

This supports the view that Ethereum is on track to break through the $4,000 resistance and potentially hit new highs.

New All-Time High?

Ethereum’s price trajectory suggests a bullish outlook.

According to the wave count, ETH is in the fifth and final wave of an upward movement that started in June 2022 (white). The sub-wave count is in black.

While the first area for a potential high is at $5,395, ETH is more likely to reach a high near $7,200-$7,350 because of the confluence of Fibonacci resistances.

Three important Fibonacci levels predict a high in this area: The 1.61 retracement of the entire correction (black), the 2.61 retracement of wave four (yellow), and the 1.61 extension of waves one and three (white).

The high also aligns better with the sub-wave count, which indicates ETH has started sub-wave three.

A closer look at the daily time frame shows that ETH has cleared the $3,550 horizontal resistance area and is approaching the 0.618 Fibonacci retracement resistance at $3,720.

If the ETH price breaks out, it will confirm the correction is over.

Technical indicators support this possibility. The MACD has made a bullish cross, and the RSI has increased above 50. Both are considered signs of a bullish trend and have previously led to upward movements (black circles).

Therefore, the weekly and daily time frame readings align and suggest the Ethereum price will increase to new highs.

Positive Start to 2025

Ethereum has had a positive start to 2025, increasing by 10%. ETH has nearly reached the $4,000 resistance area, the final one before a new all-time high. A successful breakout could accelerate Ethereum’s rally toward $5,000.