Is Ethereum a Buy in 2025?

At BITmarkets, we aim to provide high-value insights to our clients and readers. This means ensuring that all information we share is as objective and data-driven as possible.

In today’s analysis, we explore the factors contributing to the potential decline of Ethereum and explain why, at this moment, it may be wise to understand market conditions on a deeper level before going ahead with any purchase decision.

4-hour time frame analysis

ETHUSD - 4 Hour Time Frame

Since late 2024, Ethereum's price action has been defined by a strong bearish structure, marked by lower highs, lower lows, and key resistance zones. One of these critical resistance zones, highlighted in orange on the attached chart, serves as a confirmation parameter—indicating whether Ethereum will continue its downward trajectory or if a trend reversal is on the horizon.

For a bearish trend reversal to be confirmed, the price must close decisively above the upper resistance level of this zone. If this condition is met, traders may consider entering a buy position, with the Stop Loss strategically placed below the internal low, as indicated on the attached chart. This setup ensures risk management and trade validation while minimizing exposure to further declines.

Additionally, on the weekly timeframe, two significant technical factors stand out: the support zone (marked in blue) and the Sell-Side Liquidity level. These serve as potential correction targets, particularly if the resistance zone remains unbroken.

In this scenario, further downside movement is likely before any bullish reversal can be considered.