Is Ethereum Bullish or Bearish in 2025?

Following yesterday's initial surge driven by Trump’s announcement of a strategic crypto reserve, the cryptocurrency market has resumed its downward trajectory. Investors and traders initially reacted to the news as a strong bullish catalyst, expecting it to reinforce the strength of the selected cryptocurrencies.

While we share this long-term bullish outlook for Ethereum, it is crucial to recognize that short-term liquidity withdrawals are a natural part of market dynamics, facilitating order matching before a potential reversal. But when will the market provide a favorable buy entry? Let’s break it down.

Daily time frame analysis

ETHUSD - 1 Day Time Frame

Since December of last year, Ethereum has been following a clear bearish trend, characterized by lower highs and lower lows. This downtrend is primarily defined by bearish structures, within which key resistance zones have formed, as highlighted in blue on the attached chart.

These zones reinforce bearish momentum while also serving as potential confirmation points for buy positions, should the price manage to close decisively above them.

Ethereum price target

As long as Ethereum continues to form lower highs and lower lows, and resistance zones remain unbroken, the short-term bearish structure may remain intact—despite the bullish sentiment in the broader market.

Furthermore, the decline has been influenced by the withdrawal of key Sell-Side Liquidity levels, a factor that often contributes to market corrections. However, liquidity sweeps alone only partially confirm a potential buying setup.

Proper confirmation is typically achieved when the price successfully closes above the lower resistance zone, as indicated on the chart. Until this happens, the bearish trend could stay in control.