While some large holders appear to have trimmed positions late last year, other deep-pocketed investors have begun accumulating ETH—signs that the second-largest cryptocurrency by market cap retains robust backing.

Analysts remain optimistic that, with renewed whale activity and strong fundamentals, Ethereum could reclaim higher price levels in the coming months. That means the ETH price prediction for 2025 is positive.

Source: Brave New Coin Ethereum Liquid Index

Late 2024 data showed a 73% dip in whale netflow, initially suggesting reduced confidence among major investors. Yet in a contrasting development, one prominent whale made a splash in January 2025 with a purchase of more than 22,000 ETH at roughly the $3,300 range. This move showcased a countertrend view: despite short-term volatility, big players still see potential for sizable gains in the near future.

Meanwhile, on-chain analytics also point to a dynamic environment. New Ethereum addresses increased over 3% in the past week, signifying fresh entrants to the network. Though active addresses briefly declined, observers see this as a lull rather than a broader downturn, given the recent whale interest and the broader health of the ecosystem.

Sideways Price Action and Near-Term Targets

After a flat stretch under $3,500, Ethereum has faced repeated attempts to break free of its trading range. Indicators such as the Moving Average Convergence Divergence (MACD) and Taker-Buy-Sell ratios have bounced between mild bearish and bullish signals, leaving many traders on the sidelines.

Still, leading analysts argue that a decisive breach of the $3,800 level could kickstart a rally toward $5,000—an event that would likely require coordinated whale accumulation and improved overall market sentiment.

Competition with Bitcoin, But a Unique Value Proposition

Though Bitcoin significantly outperformed most cryptos in 2024, Ethereum’s developer ecosystem and Web3 integrations remain unrivaled. Decentralized applications (dApps), DeFi protocols, and non-fungible token (NFT) platforms still rely heavily on Ethereum’s network. Despite occasional spikes in fees and the growing popularity of Layer-2 networks, Ethereum continues to stand out as the default environment for cutting-edge blockchain innovation.

Whether ETH can push past $4,000 or $5,000 later this year hinges on its ability to attract ongoing whale support, entice new retail users, and deliver more efficient transactions through recent and upcoming upgrades. If these catalysts align, Ethereum could stage a decisive breakout and close the performance gap with Bitcoin.

Given ETH’s indispensable role in crypto markets, many experts believe that short-term price turbulence is merely part of its longer trajectory. As more large investors take advantage of sideways action to accumulate, the stage is set for Ethereum to not only recover its footing, but potentially reach new highs in 2025. The Ethereum price prediction for 2025 remains positive.