ETH investors remained bullish into 2025, despite high speculation.The cryptocurrency has experienced high fluctuation. Over this period, ETH prices have dropped from $4109 to $3219. This price volatility has left the altcoin trading sideways. These market conditions have left analysts talking about Ethereum’s performance into 2025. Cryptoquant analyst Sun Moon has suggested a robust performance for ETH in Q1 2025 citing market stability.
Ethereum’s liquidity providers have reduced long positions. When entities and traders that supply capital into ETH reduce their long positions, it indicates a shift in sentiment. If liquidity providers reduce exposure, the market may struggle to sustain bullish momentum without fresh buying pressure.The analyst further noted that despite the shift in sentiment, Ethereum’s long liquidations have declined. This absence of widespread liquidations implies that the market is becoming more stable.Therefore, going into 2025, ETH is following the same pattern as last year. In 2023 December, ETH prices surged from $2045 to $2448 before the correction then declined to $2259 as the year ended. Starting January 2024, prices spiked from $2281 to $2717 then followed a 2-week consolidation before a strong upswing to $4090. Therefore, if the prices follow the same pattern, and history is anything to go by, ETH prices will see a strong upswing. As the analyst noted, Ethereum’s price will rise significantly in 2025 Q1.Despite Ethereum’s liquidity providers reducing long positions, ETH is still experiencing a significant demand for long positions amidst strong speculative activity.Source: CryptoQuant For starters, this is evidenced by the fact that the estimated leverage ratio has experienced a sustained rise. Over the past month, ELR has spiked from 0.4 to 0.56. This upsurge reflects heightened speculation as investors are more willing to take risks with borrowed funds to maximize potential gains and losses