Dennis Liu, a general partner at Momentum 6, predicts that Ethereum (ETH) could reach $14,000 by the end of 2025, as he stated in a post on X.

He projects that if Bitcoin doubles to $200,000, ETH could quadruple to $14,000, based on its historical tendency to outperform Bitcoin by a factor of two.

Liu emphasizes that the next six months are crucial for ETH's performance, suggesting it has the potential to dominate the market during this period.

Data from the past decade shows that ETH typically outperforms Bitcoin from January to June, while Bitcoin leads from July to December, making the first half of the year a favorable time for ETH holders.

He points out significant institutional interest in Ethereum, noting a shift in ETF inflows that turned positive in November 2024, resulting in $6 billion in net inflows over a few months.

Liu mentions that institutions are currently purchasing more ETH than BTC monthly, indicating growing confidence in Ethereum as an investment.

Liu highlights the recent shift in the US Federal Reserve's policy, particularly its slowing of balance sheet reductions since May 2024, as a potential catalyst for ETH's growth.

He anticipates that renewed liquidity injections could occur following the Federal Open Market Committee (FOMC) meetings on January 29 and March 19, which historically drive ETH/BTC prices higher.

Liu notes potential support for ETH from the Trump administration, citing the former president's NFT collections and DeFi platform built on Ethereum, which could influence regulatory stances towards DeFi.

Liu concludes that several factors, including rising ETF inflows, potential Fed liquidity injections, and favorable policies, create a significant opportunity for Ethereum's growth in the near future.

He argues that ETH's underperformance compared to Bitcoin is due to 'institutional timing', noting that ETH is primarily driven by institutional investors rather than retail interest.