Ethereum Price Prediction 2025: Bullish 160% vs Bearish Warning

Is the ETH market bullish by the end of the year? Tesseract CEO boldly claims a 160% rise James Harris, the CEO of Finnish company Tesseract, recently made bold predictions about the mid-term price trend of Ethereum. In an interview, he stated that he expects the price of ETH to reach $6,500 by the end of 2025, which implies an astonishing 160% rise compared to the current price.

Harris listed several key supporting factors for his bullish view:

1. The Ethereum staking participation rate continues to rise: More ETH is being locked in staking, reducing the circulating supply.
2. Layer2 application Gas fees surge: The prosperity of L2 will increase the Gas demand on the mainnet, which is beneficial for ETH value capture.
3. Institution adoption rate increases: Enterprise-level applications increase.
4. Ethereum Spot ETF Fund Inflows: Recent fund inflows have ignited market enthusiasm.
5. The benefits of the Pectra upgrade have not yet been released: He believes that the upgrade benefits will drive ETH to rise in the second half of the year (H2).

Regulatory risk becomes the biggest variable

However, Harris also warned investors to be wary of the "adverse regulatory headwinds" that could undermine this forecast. He specifically mentioned the recent series of delayed approvals by the U.S. SEC for Ethereum ETF staking applications, which pose potential risks.

Bearish view: Declining user activity and increasing competition threaten ETH Despite optimistic forecasts, some analysts are cautious about the long-term trend of ETH. Markus Thielen, CEO of 10X Research, provided a pessimistic Ethereum price prediction, expecting ETH to drop to $2,300, a decline of about 8% from the current price.

Tilen believes the biggest obstacle to the bullish rise of ETH by the end of the year is:

• On-chain user activity decline: actual usage decreases.
• Layer2 Internal Competition (Cannibalization): L2s may compete for users and transactions.
• Strong competition from public chains like Solana: Market share is being taken.
• Potential Threats Approaching XRPL (XRP Ledger): New competitive pressure.

Corporate reserves show divergence, short-term selling pressure raises concerns It is worth noting that despite Tilen being bearish, some listed companies are still actively increasing their holdings of ETH as corporate asset reserves:

• SharpLink Gaming recently increased its ETH reserve by 7,689 ETH.
• Bit Digital has also turned to the ETH reserve strategy.

However, Tiren still believes that in terms of corporate reserves adoption, Bitcoin is a better choice than Ethereum (although the adoption of stablecoins may change this situation).

Short-term market sentiment: Polymarket prediction platform data shows that the market believes the probability of ETH breaking through its historical high (4,878 USD) before the end of the year is only 22%. More urgently, the recent transfer of ETH seized by the US government to CEX has raised market concerns about whale sell-offs.