In a thread on X today, January 20, Dennis Liu (@VirtualBacon0x), a general partner at Momentum 6, laid out a bold forecast for Ethereum (ETH), suggesting the world’s second-largest cryptocurrency could reach a price target of $14,000 by the end of 2025. Liu also contends that the next six months will be pivotal, highlighting ETH’s potential to “dominate the market” through June.

“Ethereum is about to dominate the market, you don’t want to miss this window,” Liu wrote. “Ethereum has been lagging behind Bitcoin this cycle, but that’s about to change. I believe ETH will shine in the next 6 months.”

Why Ethereum Could Outperform The Market

Despite ETH’s growing adoption, Liu argues that its underperformance relative to Bitcoin stems from “institutional timing.” According to him: “ETH is institutionally driven, unlike Bitcoin or retail-favored altcoins. ETFs provide stability and utility, making ETH ideal for institutional investors.” Liu suggests institutions have been waiting for market conditions to improve and sees 2025 as the year when these conditions finally align.

Liu also points to the US Federal Reserve’s policy shifts as a catalyst for ETH’s growth. He notes that since May 2024, the Fed has been slowing its balance sheet reductions, and a possible pivot toward renewed liquidity injections could occur after the January 29 or March 19 Federal Open Market Committee (FOMC) meetings.

“Since May 2024, the Fed has slowed balance sheet reductions, signaling a pivot. A liquidity boost could follow Jan 29 or Mar 19 FOMC meetings. Why it matters: Fed liquidity pumps historically drive ETH/BTC higher.” He concludes that such a move by the Fed “means ETH outperformance” could be on the horizon.

Citing a decade of market data, Liu claims ETH typically outperforms Bitcoin from January to June, while Bitcoin tends to lead from July to December. “From January to June, ETH consistently outperforms Bitcoin. … If you’re holding ETH, now until June is historically the best window for gains.”