Trader Eugene releases Q1 outlook for next year: ETH is expected to benefit the most and is expected to hit a new high

Trader Eugene Ng Ah Sio published his Q1 2025 Outlook and Expectations on X: “It feels like a long time since Trump won the election 2 months ago, and now we are about to enter 2025 with prices significantly higher than they were not long ago, and the industry is full of hope for a new pro-crypto world as the US takes the lead in developing crypto-friendly policies and regulations. Given the local highs we experienced in December, I think the bull market will continue in a similar way, with some assets outperforming and others lagging behind. For the next quarter, I think ETH will benefit the most. There are three reasons: 1. 10 IQ price fractal: BTC has risen 40% from its previous high, while ETH is 30% below its previous high. While this doesn’t make a lot of sense, both assets have ETF products, and it is not difficult for the public to believe that ETH is cheaper than BTC (and therefore has more room to rise); 2. Trump’s pro-crypto government: This has been the most favorable for utility/smart contract related assets. We have seen some DeFi Assets (AAVE/UNI) have performed well in anticipation of this, but the base asset that has benefited the most is undoubtedly ETH. Trump's WLF has not done anything on Solana, but has been constantly acquiring Ethereum-based assets, and I think this will only continue; 3. Base Ecosystem Development: Of all the L2s on Ethereum, Base is the most prominent chain this year. With Coinbase's native distribution channels and Virtuals-led AI agent meta-organic development, Base provides a value proposition very similar to Solana and can undoubtedly be classified as a competitor. This creates natural demand for ETH as a base asset (since Base itself does not have its own token) and provides positive liquidity as ecosystem activity increases. I expect ETH to break $4,000 as early as January next year and may hit a new all-time high sometime in the first quarter. In addition, I think three verticals that will continue to perform well are: 1. AI Agents; 2. Utility Fee Generation Tokens; 3. Potential ETF Cryptocurrencies. In terms of cycle peaks, I suspect that most of 2025 will be similar to 2023 or 2024 is similar, we have some funding or re-rating, and then a huge PvP cut. Eventually, one of these rallies will be the global top, but I don’t think we’re close to that high yet.”