5 Reasons Why Ethereum Could Soar in 2025

Ethereum (ETH) has merged nearly $3,400 on Tuesday, preparing to end the year with a profit of approximately 50%. Ethereum has brought about a modest increase compared to Bitcoin and most of the top 20 market cap-ranked altcoins. The story could change in 2025 with catalysts such as the upcoming Ethereum upgrade, institutional investor accumulation, and other market drivers. Ethereum Prepares to Upgrade Pectra in 2025 Ethereum could see improvements in scalability, security, and user experience with the upcoming Pectra upgrade, expected to be released in 2025. The upgrade will introduce enhancements in account abstraction, transaction verification, and network performance. The goal is to improve the experience of both users and developers on Ethereum and facilitate future scalability upgrades. Limiting the share of authentication, withdrawal of betting and rational development of smart contracts can improve the efficiency and security of the Ethereum network. This could create a domino effect for Layer 2 chains built on Ethereum for their security infrastructure. Pectra will be the third major upgrade in the Ethereum ecosystem after the Merge and a successful implementation could act as a catalyst for Ether's recovery in 2025. Ethereum analyst Anthony Sassano estimates that the Pectra upgrade will be launched in March or April next year. Notably, Unichain, an Ethereum-based protocol, is expected to launch its mainnet in early 2025, aiming to utilize blob and the improvements of Pectra which could help Ethereum meet Unichain's scalability requirements. Institutional Investors Accumulate Ether During Recession The data information platform on the Santiment chain shows a stable increase in two main indicators: the supply source from non-exchange wallet addresses and the top addresses of token symbols based on the percentage of total supply. The increase in these figures in November and December indicates that large wallet investors are accumulating Ether. Please provide the Vietnamese text to be translated. Data from Lookonchain shows that organizations like World Liberty Financial, backed by Donald Trump, have been buying Ether tokens during a period of ETH price decline. As the supply of Ether held by large organizations outside of the trading platform increases, this signals whale accumulation, a bullish indicator for ETH. US-based Ethereum Spot ETFs Can Transfer Staking Profits While some Ethereum ETFs trade in the US have been approved by the SEC, none currently include profits from staking. The regulatory agency has opposed all ETF proposals including staking, unlike proposals in Switzerland and Canada. The regulations supporting cryptocurrencies under the presidency of elected President Donald Trump could pave the way for investors to increase profits through ETH staking rewards. ETF issuers may benefit from staking rewards by increasing NAV, reducing management fees, and dividends. A report by Bernstein Research shows that under the crypto-friendly Trump administration, the SEC is likely to approve staking yields for Ethereum ETFs. Please provide the Vietnamese text to be translated. Higher Application Rate Among Organizations, Beyond Token Utility Dario Lo Buglio, CTO at Brickken, told Crypto.news in an exclusive interview: “There's one thing people should remember about Ethereum, it's not just about financial use cases like Bitcoin, it also has smart contracts. It can be used to program applications and there needs to be a balance between the value of Ethereum and its utility as a form of payment and decentralized applications. I don't think there's a delay in price. I think there's a delay in positive development. And that's because this is the largest decentralized blockchain, so it takes time to implement changes, unlike Solana and other protocols that can upgrade smoothly.” Lo Buglio remains optimistic about Ethereum being adopted by organizations for its smart contract functionality and underlying technology. Technical Analysis And Objectives Ethereum fluctuated around $3,400 on December 31st. The currency faced resistance at $3,497 and found support in the reasonable value range between $3,159 and $3,257. On the daily price chart of ETH/USDT, technical indicators support the potential price increase for Ether. The relative strength index is 46 and sloping upwards, indicating positive underlying momentum. Converging moving average divergence suggests shorter bars on the chart, indicating potential weakening of negative momentum. Traders should closely monitor the possibility of a price trend reversal for Ethereum. Please provide the Vietnamese text to be translated. The target of Ether is $4,500, with a significant psychological support level at $3,000, as shown on the daily price chart of ETH/USDT. Disclosure: This article does not represent investment advice. The content and materials on this page are for educational purposes only. Please provide the Vietnamese text to be translated. DYOR! #Write2Win #Write&Earn $ETH {spot}(ETHUSDT)