Is it finally Ethereum’s time to shine?

After a spate of liquidations this week, crypto markets have bounced back — but few rebounded as high as Ethereum.

Crypto markets have rebounded this week following a wave of liquidations, with few assets seeing as strong a recovery as Ethereum.

The world’s second-largest cryptocurrency by market cap rose 6% over the past 24 hours, according to CoinGecko, outpacing Bitcoin’s 2.5% gain and Solana’s 3.5% rise.

One analyst now says the coast is clear for a new all-time high — and it could come as soon as early 2025.

“The cogs and bolts are in place,” Iliya Kalchev, an analyst at Nexo, told DL News. “Ethereum could catapult beyond $5,000 as early as the start of 2025.”

The latest crypto rally — sparked in part by Donald Trump’s US election win — has seen several cryptocurrencies hit new all-time highs, including Bitcoin, Solana and even XRP.

Since Trump swept the elections last month, BTC has risen 62%. Solana and XRP, meanwhile, rallied 59% and 430%, respectively, over the same period.

Though Ethereum rose 79% during that period, it still hasn’t hit its all-time high of $4,800 in 2021.

The great Ether rotation

According to Carlos Guzman, an analyst at market maker GSR, Ethereum has an edge.

“ETH has a big advantage in that it’s the only token besides BTC to have a US ETF,” he told DL News.

“As traditional investors allocate more to crypto… they will look to ETH as a natural alternative.”

Two of the largest providers for spot Ethereum exchange-traded funds, BlackRock and Fidelity, are preparing for that very rotation.

Both have acquired over $500 million of Ethereum since December 8, according to Arkham Intelligence.

Monetary policy in the US is also setting the stage for a banner year for cryptocurrencies, an asset class that tends to perform well in risk-on markets.

Following new inflation data on December 11 that showed consumer prices still rose in November, market watchers are now pricing in a 96% chance of a quarter-point cut at the Federal Reserve’s next meeting on December 18.

Crypto traders are taking note.

The amount of outstanding options contracts in Ethereum, known as open interest, on the Chicago Mercantile Exchange just hit a new record, according to Kalchev, signaling enthusiasm for the cryptocurrency.

“Robust liquidity, optimism around unfolding regulatory developments, and capital rotation within the crypto market, further support ETH’s price momentum,” said Kalchev.

Liam Kelly is a Berlin-based reporter for DL News. Got a tip? Email him at liam@dlnews.com.