In an interview with Aaron Arnold, founder of Altcoin Daily, Matt Hougan, the Chief Investment Officer (CIO) of Bitwise Asset Management, shared his optimistic outlook on Ethereum for 2025. Amidst a crypto landscape where Bitcoin and emerging high-performance blockchains like Solana, Sui, and Aptos dominate headlines, Hougan positions Ethereum as a “contrarian bet” that may offer significant returns for investors willing to look beyond current market sentiments.

Why Ethereum Is The Best “Contrarian Bet”

Hougan acknowledged Ethereum’s unique position within the crypto market. He describes Ethereum as “the asset that people love to hate; it’s kind of the middle child of crypto.” While Bitcoin maintains its status as the original cryptocurrency and a store of value, newer blockchains capture attention with promises of superior performance and innovative features. Ethereum, meanwhile, is often criticized for issues like high fees and the migration of activity to Layer-2’s, leading some to view it as outdated technology struggling to keep pace with its competitors.

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However, Hougan challenges this narrative by emphasizing Ethereum’s foundational role in some of the most critical and rapidly growing areas of the crypto industry. “When you step back and look at it, what are the killer apps of crypto outside of Bitcoin? They are things like stablecoins, DeFi [decentralized finance], and tokenization,” he notes. Despite the emergence of alternative platforms, Ethereum remains the leading blockchain supporting these applications. It is the primary choice for developers and institutions. “If you’re a large traditional financial player looking to build on a public blockchain what blockchain are you going to choose most likely? You’re going to choose Ethereum,” Hougan claims.

The Bitwise CIO attributes Ethereum’s underperformance to a transitional phase in its development. “I think Ethereum has sort of passed over this year because it’s going through this complex teenage adjustment in its architecture,” he explained. This “teenage adjustment” refers to Ethereum’s ongoing upgrades.

Hougan remains bullish on Ethereum’s long-term prospects, considering it a strong contrarian play for 2025. “Ethereum is the best contrarian bet in crypto right now,” he stated via X. Hougan believes that the market’s current focus on Bitcoin and newer blockchains has caused many to overlook Ethereum’s enduring strengths and potential for growth. He asserts that as the blockchain completes its architectural upgrades, it will be better positioned to capitalize on its dominant role in key sectors like stablecoins and DeFi.

When asked whether he believes Ethereum will break it’s all-time highs, Hougan expressed cautious optimism. “I certainly think we could see that in 2025 if we see significant growth in the application space,” he responded. However, he emphasized that Ethereum’s ability to reach new price levels is more conditional compared to Bitcoin. “I think it’s maybe more conditional than Bitcoin,” he admitted.

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Key among these conditions is the enactment of favorable stablecoin legislation. “We need to see positive stablecoin legislation that helps that move aggressively into the mainstream,” Hougan stresses. Regulatory clarity and support for stablecoins could lead to increased adoption and integration into the mainstream financial system, directly benefiting Ethereum as the primary platform for these digital assets. Additionally, he points to the necessity for continued growth in decentralized applications (dApps) built on the Ethereum network. “We need to see more growth in apps that are built on the Ethereum ecosystem,” he added.

Hougan advises investors to focus on the overall growth and development of the Ethereum ecosystem rather than short-term concerns like fee structures or the migration to Layer 2 solutions. “I don’t think that’s the game to play with Ethereum right now,” he remarks regarding worries about fees and network congestion. Instead, he suggests that the intrinsic value of Ethereum will become apparent as its ecosystem expands and matures. “Think about the growth of the ecosystem, and the value will sort itself out,” he asserts.

Hougan stated that while he remains bullish on both Bitcoin and Ethereum, he sees a unique opportunity with Ethereum due to its current undervaluation and the market’s overlooking of its potential. “I know I just made a very bullish case for Bitcoin; now I’m making a very bullish case for Ethereum. I am bullish for both, and I think the setup for both is pretty good,” he concludes.

At press time, ETH traded at $2,624.

Featured image from YouTube, chart from TradingView.com

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Following the market’s recent performance, Ethereum (ETH) attempted to break out of a bullish formation. Some analysts believe the cryptocurrency is preparing to catch up with Bitcoin and aim for March highs.

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Ethereum Getting Ready To Challenge BTC

This week, Ethereum has successfully reclaimed the $2,500 support zone following the market’s recent performance. The second-largest cryptocurrency by market capitalization has seen an 8.6% increase in the last seven days, moving from the $2,300-$2,400 range to the $2,600 mark.

In the last 24 hours, ETH has retested the $2,600 resistance level, currently holding it as support as it attempts to reclaim the $2,700 price range. This zone is the next crucial level, as the cryptocurrency hasn’t successfully broken above it in nearly three months.

Market analyst CryptoWolf pointed out that Ethereum has been rejected from the local top around this level twice since August’s market crash, making it the next big resistance to break.

However, once the zone is cleared, ETH’s price is “heading straight to the 3500s” since the analyst considers that the $3,000 mark “won’t stand a chance.” Similarly, crypto analyst Alex Clay suggested that the King of Altcoins is about to “catch up on BTC” and rise toward $3,500.

To the analyst, Ethereum completed its local accumulation within the $2,100-$2,700 range, and “it’s ready to switch the short-term trend for the bullish.” Other market watchers also suggested that the market is near the bottom after the sideway moves, based on the ETH/BTC chart.

Tony Research stated that the chart “suggests that altcoins are currently cheap relative to Bitcoin. An increase in this chart will positively affect altcoins and their prices.” As the investor pointed out, altcoins could see significant growth during Q1 2025 since Q4s have historically been Bitcoin’s best time to grow.

ETH Attempts Breakout From Bullish Pattern

Analyst Crypto Yapper noted that Ethereum is trying to break from its consolidating formation. The cryptocurrency has been within a three-month symmetrical triangle pattern, and it attempted to break above the upper trendline on Tuesday.

Yesterday, ETH rose momentarily above the trendline after hitting $2,688 but quickly retraced to $2,550. Ethereum tried another breakout from the symmetrical triangle upper trendline on Wednesday, surging above $2,630 before settling around the $2,600 support zone.

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To the analyst, Ethereum will target the $2,900 mark next if it breaks out of this formation. Recovering this level could propel ETH’s price to its March highs, as the $2,900-$3,000 price range was a key support zone during the rally’s first leg.

Meanwhile, season trader Peter Brandt recently highlighted an inverted Head and Shoulders (H&S) pattern on ETH’s chart. The trader signaled that an H&S bottom is forming, also suggesting a massive breakout might be imminent.

As of this writing, ETH is trading at $2,612, a 1% increase in the daily timeframe.

Featured Image from Unsplash.com, Chart from TradingView.com