Will the Ethereum Bull Run End in 2025? Crypto KOL Warns of Potential ETH Price DropProminent crypto KOL Lark Davis, in a YouTube video released on September 9th, stated that the current crypto market cycle will likely peak in 2025 and advised selling and exiting at that time. He believes that the global liquidity cycle will reach its peak in 2025, followed by a decline
Will the Ethereum Bull Run End in 2025? Crypto KOL Warns of Potential ETH Price Drop
Prominent crypto KOL Lark Davis, in a YouTube video released on September 9th, stated that the current crypto market cycle will likely peak in 2025 and advised selling and exiting at that time. He believes that the global liquidity cycle will reach its peak in 2025, followed by a decline. China's credit cycle is also projected to peak in the same year. Currently, short-term bond yields are higher than long-term yields, but the yield curve is flattening, signifying a shift in the economic cycle. Davis, therefore, anticipates significant market turmoil in 2025, potentially leading to a bear market.
To delve deeper into ETH's potential trajectory before 2025, a technical analysis is crucial.
1. Key Resistance Areas
- OB1 (Order Block): around 2465.23 USDT
This area has historically exhibited strong selling pressure, with prices retracting whenever they approach it. This indicates a significant accumulation of sell orders. The red-shaded area, representing OB1, spanning from 2465.23 USDT to 2450.09 USDT, is a key defense point for bears.
- 2392 USDT - 2414 USDT area (Liquidity Area)
This area is marked as "Liquidity" due to multiple price interactions. It signifies a crucial battleground for bulls and bears. The price has repeatedly approached or tested this zone in the past, triggering significant reactions.
2. Key Support Areas
- 2270 USDT - 2296 USDT
This area represents a vital support level in the short term, as prices have received strong buying support after several dips. The green-shaded area highlights this buy accumulation zone. If the price continues to decline, this region could offer strong support.
- 2242.17 USDT - 2260 USDT
This is a stronger support level further down on the chart. In the short term, if prices breach the 2260 USDT support, 2242.17 USDT could become a target for bears and a potential buy opportunity.
3. Current Market Structure and Trend
Currently, Ethereum is trading around 2350 USDT, attempting to bounce from previous support levels but failing to break through the upper resistance. Multiple attempts to rally above the 2400 USDT liquidity zone have been unsuccessful, indicating a bearish market sentiment.
Market Performance: The current bounce lacks momentum and might continue to test the 2260 USDT area, potentially even dipping to 2242.17 USDT. If the price successfully defends this support, a rebound could occur, targeting the 2400 USDT zone.
4. Risk Management
- Stop-Loss Setting: For longs (bulls), it's recommended to place a stop-loss below 2260 USDT. If this support is effectively breached, consider exiting the position. Shorts (bears) should set strict stop-losses in the OB1 area to protect against a price breakout and potential further upside.
- Position Management: The market currently exhibits high volatility. It's advisable to manage positions prudently to mitigate potential market fluctuations. Closely monitor market sentiment changes and the effectiveness of key resistance and support levels.
5. Summary
The current ETH/USDT trend suggests a pronounced bearish bias in the short term, with prices facing downward risks despite several unsuccessful rallies. Key attention should be focused on the 2260 USDT support below. If this level provides sufficient support, a rebound to the 2400 USDT zone could be triggered. Otherwise, the price will likely continue to decline towards 2242 USDT. Investors should make decisions based on market dynamics, the performance of support and resistance levels, and their individual risk tolerance.
While Davis's views are not unfounded, it remains uncertain whether 2025 will mark the end of this bull cycle. Investors should remain objective, exercise caution, conduct independent analysis, and formulate sound investment strategies.
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