Top Trader Eugene: We Are Far From the Top, Q1 ETH Will Benefit the Most

BlockBeats News, December 29, Top Trader Eugene Ng Ah Sio released the Q1 2025 Outlook and Expectations. After a long wait, we are finally stepping into 2025 following Trump's victory in the presidential election two months ago. The current market prices have surged significantly from recent levels, and people are hopeful for a world led by the U.S. that is more supportive of cryptocurrency. Although we experienced a local high in December, I believe the bull run will continue to evolve in a similar manner, with some assets outperforming while others lag behind. For the next quarter, I believe the asset that will benefit the most is Ethereum (ETH). Here are three reasons supporting my view:

1. Price Comparison and Market Psychology
According to the "10 IQ Price Fractal" theory, Bitcoin's (BTC) price has already risen by 40% from its previous all-time high, while Ethereum (ETH) is still around 30% below its previous all-time high. Although this alone does not mean much, since both assets have introduced ETF products, ETH appears "cheaper" than BTC to retail investors, therefore considered to have a greater upside potential.

2. Trump's Pro-Crypto Policy
The pro-crypto stance of the Trump administration is most favorable for assets with utility and smart contract capabilities. We have already seen some decentralized finance (DeFi) assets (such as AAVE and UNI) perform well under this expectation, but the asset that will benefit the most is undoubtedly Ethereum. Trump's World Liberty Financial (WLFI) project has not engaged in any activities on Solana but continues to choose Ethereum-related assets. I believe this trend will persist.

3. Development of the Base Ecosystem
Among all the Layer 2 solutions on Ethereum, Base has undoubtedly been the star chain of the year. With Coinbase's native distribution channel and the organic development of an AI-driven metaverse led by "Virtuals," Base provides a value proposition very similar to Solana and can unquestionably be seen as a competitor. As Base itself does not have its own token, this naturally creates demand for ETH as the underlying asset and brings positive inflows with the increasing ecosystem activity.

I expect ETH to break $4000 in January and potentially approach its all-time high within the first quarter.

Three areas I believe will continue to perform well are: AI Agents; tokens with utility and fee generation capabilities; potential ETF-related tokens.

I would not categorize these views as "contrarian," but I also do not believe now is the time to take a strong contrarian stance. There will be a time for contrarian plays in the future, but now is not that time.

On the view of the cycle top: I suspect most of 2025 will be similar to 2023 or 2024, where certain areas see re-rating and gains, followed by significant PvP (player versus player) oscillations. Ultimately, one of these upticks will mark the global cycle top, but I believe we are far from that point at present.