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5 Reasons to Be Bullish on Ethereum (ETH) Despite January Drop
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5 Reasons to Be Bullish on Ethereum (ETH) Despite January Drop
Jan 29, 2025 10:48 PM

“We are not bulled up enough about Ethereum,” said former UBS bond trader and Etherealize founder Vivek Raman on Jan. 29.

It has been more than a week since Donald Trump’s inauguration, and the “entire Ethereum ecosystem has been reborn,” he added, referring to the recent leadership shakeup at the Ethereum Foundation.

Ethereum now has “structural” and not cyclical tailwinds for 2025, he said. However, none of that is being reflected in the asset’s price action yet as the ETH angst continues.

5 Reasons to be Bullish on ETH

The Trump family’s DeFi project, World Liberty Finance, has been buying and building on Ethereum. Around 64% of the project’s $400 million portfolio is in ETH, and Lido staked ETH (stETH), according to Arkham Intelligence.

“Ethereum is the gold standard and the most secure platform for DeFi,” he said before adding, “ETH is the primary reserve asset for the digital economy.”

WE ARE NOT BULLED UP ENOUGH ABOUT ETH

It’s been ~1 week since the inauguration

And entire Ethereum ecosystem has been reborn

5 reasons why ETH now has **structural,** not cyclical tailwinds for 2025 and beyond:

(0/6)

Raman noted that on the buy side, asset managers and hedge funds “are vocally all in on tokenization,” adding that “all roads for tokenization flow through Ethereum.”

Additionally, investment banks are embracing crypto functionality. “And what is the safest, most secure blockchain with programmatic finance capability? Ethereum.”

One of the biggest catalysts for Wall Street adoption is the repeal of SAB 121, Biden-era legislation restricting the ability of banks to custody crypto.

“Suffice to say, the floodgates are open for banks to custody ETH, BTC, and tokenized assets on their balance sheets.”

Finally, staked Ether ETFs are likely on the horizon as the new SEC chair is pro-innovation, he said before concluding, “Ethereum is the new operating system for the global economy.”

ETH Price Still Weak

Investor and entrepreneur Ted Pillows observed that ETH is forming ‘higher lows’ in the longer timeframe, with $4,000 being the crucial level.

Once resistance there is broken, “I’m expecting Ethereum to hit $9K to $10K within 3-4 months. Trump will buy more and more,” he said.

Analyst ‘Crypto Admiral’ agreed, stating, “Ethereum is on the verge of something big,”

#Ethereum is on the verge of something big, and the excitement is palpable!

Buckle up, because this could be a turning point! pic.twitter.com/z3Sd18jXcv

ETH has gained 2.3% on the day to reclaim $3,200 at the time of writing but still remains down 13.5% from its January high. It has failed to follow other altcoins, which have rallied and remain range-bound for now.

Nevertheless, the month of February has been historically bullish for ETH, which is providing a ray of hope for investors following a depressing January for price action.

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