While Ethereum (ETH) underperformed in 2024 and fell behind Bitcoin, analysts said the situation could change.
At this point, Sean Dawson, head of research at DeFi protocol Derive, claimed that the Ethereum price could reach a peak of $12,000 this year.
Dawson believes that the excitement surrounding the first year of Donald Trump’s presidency and a major network upgrade called Pectra will be influential in ETH’s rise.
Stating that 2025 will be a bullish year for Ethereum, the analyst said that if ETH is successful in the Pectra update, it will reach $ 12,000 by the end of the year and the regulatory-friendly environment under the Trump administration will further support growth.
“ETH has been consolidating around $3,500 since Dec 20, but the options and derivatives market is telling us a more bullish story.
On Derive.xyz, there is a significant bias towards call options with open interest being 250% higher than puts.
This signals strong bullish sentiment as investors seek upside leverage through these options.”
Dawson’s $12,000 prediction for the end of 2025 would represent an increase of approximately 257% from Ethereum’s current price.
Dawson is bullish on Ethereum, but warned that the price could fall below $2,000 in the event of a bear market. Dawsom added that this could only happen in difficult circumstances, such as spot Ethereum ETFs failing to attract institutional interest and losing ground to a successful Solana ETF.
*This is not investment advice.
