Ethereum January Slump Sparks Debate: Will February See a 46% Rally Repeat?

Ethereum started 2025 with a rough patch, dropping by 4.21%, while Bitcoin surged nearly 10%—raising questions about a bullish February comeback.

However, crypto experts are keeping a close eye on Ethereum’s next move, noting past trends that suggest a potential rebound.

https://twitter.com/crypto_rand/status/1884176644048576785

One analyst compared the current ETH market to Q4 2020, when a similar rejection initially failed to push ETH past a key resistance level. But once ETH broke through $400, it rallied 150% in just two months.

Source: Ted

Today, Ethereum is facing a similar scenario with the $4,000 resistance acting as a psychological barrier. Market watchers believe that if Ethereum can break through this level, it could quickly reach $5,000 and even $6,000 within 6 to 8 weeks.

Ethereum’s Historical Performance and Institutional Interest

Ethereum’s historical performance is another reason for optimism. Data shows that Ethereum tends to do well in the first half of the year, particularly between January and June. The ETH/BTC ratio also tends to be bullish during this period. This suggests that savvy investors may hold ETH until May or June before switching to Bitcoin to maximize their profits.

Meanwhile, institutions are also showing interest in Ethereum. The Trump family-linked crypto project, World Liberty, recently purchased $10 million worth of ETH, bringing their holdings to 59,329 ETH, worth $189 million. This move by big-money players suggests bullish sentiment despite the current price struggles.

“So, Trump, through World Liberty, spent $10M on $ETH.They have almost 3x more $ETH than $BTC. Even their $BTC is wrapped.”

Trading Ethereum Based on Historical Seasonality

February has historically been a strong month for Ethereum, with a 46% gain last year. If history repeats itself, traders could see a significant rally following this correction phase.

For now, investors are focused on Ethereum’s battle with the $4,000 resistance. A decisive break above this level could signal the start of a major price surge, and investors are betting big on its long-term potential.

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