After a notable bounce that took place earlier this month, Ethereum, the second-largest digital asset, is surging once again towards the key $4,000 price level. When the altcoin reclaims this level with the current bullish momentum, it is likely to witness a major rally, with popular figures predicting it could outperform Bitcoin this cycle.
Galaxy CEO Banking On Ethereum Over Bitcoin
Bitcoin, the flagship asset, may have witnessed a significant upward performance, reaching a new all-time high, but some prominent figures in the crypto market are betting more on Ethereum than BTC. Mike Novogratz, the Chief Executive Officer (CEO) of Galaxy Digital, has expressed optimism toward ETH, as he foresees a major rally in the short term.
The long-term crypto advocate and billionaire has made a bold prediction, stating that Ethereum has a real shot at outperforming Bitcoin in this cycle. Although Bitcoin is still the most popular cryptocurrency store of value, ETH may outperform it due to its growing ecosystem and technological advancements.
In the interview on CBNC Squawk Box, Novogratz asserted that he is a big believer in ETH and BTC, and he holds the two leading crypto assets. When asked which coin he would buy between the two, the investor expressed confidence in ETH, stating the altcoin is “caught up a lot” in the ongoing cycle.
According to Novogratz, Ethereum seems likely to hit the $4,000 resistance level a few times before breaking past it. Meanwhile, if Ethereum takes out the crucial $4,000 mark, the investor believes the altcoin might enter a price discovery phase, which would lead to a major rally.
Novogratz’s strong interest and optimism toward Ethereum rely on its narrative, which the investor claims is very powerful, while the market is extremely short-term. He also drew attention to the ongoing significant adoption of ETH by major treasury companies.
Presently, two major treasury companies have accumulated the altcoin in large quantities, and another big treasury firm could be joining the race. This surge in institutional accumulation underscores a broader shift in how traditional markets view Ethereum.
With these big companies purchasing ETH rapidly in large quantities, its available supply is drying up fast, which is mostly good for the price. Considering this supply shrink, the billionaire believes that ETH has a high likelihood of outpacing BTC in the next 3 to 6 months.
Risk Of Short-Term Correction Remains
Even though ETH seems poised for a rally, Crypto Dan, a market expert, has warned that the risk of a short-term correction still lingers, citing an overheating market. However, from a somewhat larger perspective, the current level is far too low when compared to the overheated futures market in March 2024 and November 2024.
Should a correction occur, the expert stated that it will probably be brief and shallow, which represents a healthy pullback before a major rally. Despite being in an upcycle, ETH hit an undervalued zone and clearly touched the bottom, suggesting that the altcoin is likely to push toward even higher prices in the second half of 2025.
Featured image from iStock, chart from Tradingview.com
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