In a post on X today, January 20, Dennis Liu (@VirtualBacon0x), General Partner at Momentum 6, placed A bold forecast for Ethereum (ETH), indicating that the world’s second-largest cryptocurrency could reach a price target of $14,000 by the end of 2025. Liu also asserts that the next six months will be pivotal, highlighting Ethereum’s ability to “dominate… “Market.” During the month of June.
“Ethereum is about to take over the market, and you don’t want to miss this window,” Liu wrote. “Ethereum has been lagging behind Bitcoin this cycle, but that is about to change. I think ETH will shine in the next six months.
Why can Ethereum outperform the market?
Despite the growing adoption of Ethereum, Liu argues that its poor performance compared to Bitcoin stems from “institutional timing.” According to him: “ETH is institutionally driven, unlike Bitcoin or retail-preferred altcoins. ETFs provide stability and utility, making ETH ideal for institutional investors. Liu notes that institutions have been waiting for market conditions to improve, and sees 2025 as the year In which these conditions will finally coincide.
Liu also points to shifts in US Federal Reserve policy as a catalyst for Ethereum’s growth. He notes that since May 2024, the Fed has been slowing its balance sheet cuts, and a potential pivot toward renewed liquidity injections could occur after the FOMC meetings on January 29 or March 19.
“Since May 2024, the Fed has slowed its balance sheet reductions, signaling a shift. Liquidity may be enhanced following the FOMC meetings on January 29 or March 19. Why it matters: Fed liquidity pumps have historically pushed ETH/BTC higher. He concludes Such a move by the Fed “means ETH outperformance” could be on the horizon, he said.
Citing a decade of market data, Liu claims that ETH typically outperforms Bitcoin from January to June, while Bitcoin tends to lead from July to December. “From January to June, ETH consistently outperforms Bitcoin. …If you hold ETH, now through June is the best historical window for gains.
Liu also highlights potential pro-ETH sentiment from the Trump administration, pointing to the former president’s NFT collections and DeFi platform built on Ethereum: “His NFT collections and DeFi platform are built on Ethereum. Trump administration plans to replace SEC leadership, reconsiders In anti-DeFi rulings, institutional optimism rose after Trump’s election victory in November 2024, leading to increased ETF inflows “Pro-crypto will directly benefit Ethereum-focused DeFi.”
Underscoring the institutional power of Ethereum, Liu points to real-world asset tokenization (RWA) initiatives by major companies like BlackRock and prominent DeFi platforms like AAVE, MakerDAO, and OriginTrail: “Ethereum isn’t driving memecoins or AI trends — it’s supporting serious institutional growth.” “
Liu underscores a notable turnaround in Ethereum ETF inflows, which turned positive in November 2024 after a period of outflows: “ETFs added $6 billion in net inflows from November to January, or 0.76% of Ethereum supply per month. …Institutions are buying more ETH than BTC per month, indicating growing confidence in Ethereum as an asset.
Projecting out to 2025, Liu believes ETH could quadruple to $14,000 if Bitcoin doubles to $200,000, pointing to Ethereum’s historical tendency to outperform Bitcoin by an additional factor of two: “If Bitcoin doubles to $200,000, ETH could double.” 4 times to $14,000, after its historical price. Outperforming (2x over BTC). …While diminishing returns may limit the upside, Ethereum remains a solid bet this cycle.
Summing up his point, Liu emphasizes that a combination of factors — from renewed Fed liquidity to potential pro-DeFi policies — create a window of near-term opportunity for Ethereum: “With ETF inflows rising, and a potential liquidity injection from the Fed… Trump is a supporter of decentralized finance. The situation and seasonal strength of ETH, all the catalysts are aligned. …It’s Ethereum’s time to shine until June. I would rather be overly exposed than miss this opportunity.
At press time, Ethereum was trading at $106,929.
Featured image created with DALL.E, a chart from TradingView.com
