Ethereum Set to Outperform Bitcoin in January

An analyst predicts Ethereum (ETH) may outperform Bitcoin (BTC) in January, supported by recent ETF flows and seasonal trends.

According to crypto analyst and investor Michael van de Poppe, ETH’s potential outperformance is linked to recent outflows from U.S. spot BTC ETFs, while ETH experienced inflows.

In the last two days, BTC ETFs saw four straight days of outflows, contrasting with ETH’s positive inflow of $183 million.

Is ETH Ready to Outperform BTC?

Poppe mentioned that the ETH/BTC ratio, which indicates ETH’s price performance relative to BTC, could surpass 0.04 in January. Currently, the ratio stands at 0.033, and reaching 0.04 would mean a 20% rally for ETH against BTC.

However, this 0.04 level has served as a short-term resistance since November, with previous rallies halted at this point. Overcoming this resistance might lead to significant ETH outperformance.

While two days of ETF flow data is insufficient for comprehensive medium-term predictions, seasonality trends support Poppe’s outlook. Historically, ETH has shown strong price performance in Q1 since 2017, averaging 92% gains. In six years, ETH only closed two years in the red.

January: A Bullish Month for ETH

Statistical analysis illustrates that January has been favorable for ETH, with average gains of 23%, further endorsing a bullish outlook for early 2025.

From a technical perspective, the pivotal level for initiating a bullish reversal is the previous support and range lows around $3.5K. Although the outlook appears positive, as the price holds above key moving averages, the $3.5K mark could attract more traders.