Ethereum’s Potential Breakout in 2025

While Bitcoin (BTC) is setting records in 2025, Ethereum (ETH) has yet to surpass its all-time high (ATH) from 2021.

As ETH investors wait for a new ATH, analyst Nick Forster believes Ethereum is gearing up for a significant breakout.

Forster highlighted that Ethereum’s volatility could rise in April, signaling a potential breakout despite current weak sentiment. The volatility is presently near monthly lows, with the 7-day and 30-day maturities recorded at 59% and 45%, respectively.

Such low volatility levels typically do not last, suggesting a potential sharp rise in volatility heading into April.

Additionally, Forster pointed out that Ethereum’s futures rate is now below the 5% yield on the U.S. Treasury, reflecting weak short-term sentiment. However, this situation may lead to price increases, as lower futures rates can make leveraged positions more appealing and boost demand.

> “When forward rates are this low, leveraged positions become more attractive and demand increases. In the following weeks, we usually see sharp price increases.”

Despite the short-term focus on Bitcoin, the Ethereum Foundation’s roadmap, including the Etherealize and Pectra upgrades, may shift institutional interest back toward Ethereum in the latter half of 2025.

Forster also estimated a 30% chance that Ethereum could fall below $1,800 by the end of May, contrasted with a 19% chance it would rise above $2,500.

*This is not investment advice.