Ethereum (ETH) Price Prediction 2025: Will the ETH ETF Launch Be a Market Mover?

2024 has been anything but short of milestones for the largest crypto assets on the market – Bitcoin and Ethereum. The former saw exchange-traded funds tracking its price receive the green light from the SEC in January of this year, after months of unsuccessful trials, and the reward received by miners for verifying blocks cut in half.

2024 has been a monumental year for the two largest crypto assets in the market - Bitcoin and Ethereum. While the former saw exchange-traded funds tracking its price receive the green light from the SEC in January after months of failed attempts and the reward received by miners for verifying blocks slashed in half, now, Ethereum is making headlines for its previous exchange-traded fund legality achievement.

Major investment firms that have been itching to launch investment vehicles tracking it have received the approval after a well-awaited victory, which is expected to be promising for the asset and push its price on an upward trajectory.

ETH ETFs are now trading within the U.S. market, although the asset's performance doesn't hint at this recent milestone. However, many crypto market experts and analysts keep their hopes high for a recovery and expansions if you look into the Ethereum price prediction 2025. It's just that the broader view is that Ethereum could meet the raised expectations and be impacted by the launch of the ETF backing after some time.

Market analyst Grzegorz Drozdz highlights that when looking at Ethereum's price, it's important to remember that the debut of Bitcoin ETFs triggered a price decline of around 18% despite the new capital injections.

Although price performances have demonstrated a somehow similar pattern, market trends are in support of Ethereum over Bitcoin as the ETF debut approaches. A recently launched report by Kaiko, a leading crypto data provider, exhibited shifting market preferences and an inclination toward Ethereum that could send its price to new peaks, overshadowing the crypto king.

Ethereum could sweat it out, reports show

Crypto markets have been highly volatile lately, altering specifically since the American watchdog greenlighted ETH ETFs. Investors exhibited positivity and optimism, and the enormous landscape change in spot trading volumes, options, futures, and perpetual contracts stands as proof.

As suggested by the research, ETH rejoiced over more volatility rewards compared to BTC. This was mostly generated by the boost in address activity and the positive inclination toward Ethereum of the market sentiment. Recent price movement emphasizes this, as the Ethereum to Bitcoin ratio has supported a positive value, standing at 0.05 from the time the funds launched.

The improved ratio posits that Ethereum's price may continue outshining the leader's cost as ETH ETFs continue trading. The journey has just started, so the best way to avoid disappointment is to give the market some time before drawing unshakeable conclusions.

ETH ETFs could bring good fortune

Spot Ethereum exchange-traded funds (ETFs) have long been trading in Canada, European countries, and other places, witnessing approval from the SEC to be transacted in the U.S. only recently. Compared to the situation in Canada, when Ethereum ETFs needed only two months to be approved after the triumph of Bitcoin-based ones, the U.S. investment firms had a longer journey to see their conceptualized investment vehicles go live.

Ethereum ETFs may have been released in 2017, two years after the cryptocurrency's launch, but it wasn't until 2019 and 2020 that Canada and Europe saw the compelling debut of each. Investment tools rose to popularity during the crypto bull market in 2021, and 12 such funds were introduced across Canada, Europe, and Brazil.

This milestone, accompanied by factors like enhanced market sentiment and the crypto market trends, paved the way for the asset to new price points. For instance, the first ETH ETF launched in Canada started trading in April and saw the crypto's price rise from around $2,300 to an ATH of nearly $4,200 in the subsequent months. Q3 also started on the right foot, as the $2,500 to $4,800 course was smooth. The asset began falling the following year, but the massive spikes registered after ETH ETFs went live emphasized investors' excitement concerning ETH investments surrounding such a milestone.

Ethereum follows Bitcoin's path after ETF greenlighting

Now that we're aware of Ethereum's journey in one of its most important years, it's essential to look at Bitcoin's performance amid such times. Bitcoin may have been launched this year in January in the U.S., but it began exploding in March and reached an ATH of over $73,000, registering a 35% rise. Similarly, Bitcoin only commenced its upward trajectory three months after its ETF launch, jumping from around $51,000 to more than $64,000 during the Canadian rally.

After ETFs entered European markets, Bitcoin needed less than six months to breach the $68,000 level. All being well, Ethereum could follow the same pattern as Bitcoin and Bitcoin did after their ETF launches in Canada and Europe, meeting the expectations of many users and experts. So far, it has already improved by 51% since the year's commencement