Ethereum (ETH) recently hit a new all-time high of over $4,900 before undergoing an amendment. As of now, assets are trading at $4,520, reflecting an 8.9% pullback from the peak, but up 7.6% last week.

The move follows a strong upward momentum over the next few weeks that returned ETH to an invisible price level since the 2021 Bull Cycle. While Ethereum’s long-term trend continues to rise, analysts are considering short-term patterns to explain the current volatility of the market.

One such perspective comes from Xwin Research Japan, a contributor to Cryptoquant’s Quicktake platform, and highlights how the liquidation cycle is repeated, especially the ETH price action early every week.

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Ethereum’s “Monday Trap” and the risk of excessive leverage

Analysis shows that the markets utilized by Ethereum show a recurring rhythm associated with liquidation events. Taking advantage of long positions, betting that prices will continue to rise, often getting caught up in a sudden reversal, forcing liquidation that amplifies downward movement.

In April and June 2025, ETH saw a long liquidation of more than 300,000 ETH in a day, as a sharp decline caused the sale of Cascade. Xwin Research Japan pointed out an impressive weekly pattern. Monday consistently showed the highest liquidation volume, followed by Sunday and Friday.

In contrast, Saturday will likely record the lowest due to a decline in market activity. Often referred to as “Monday Trap,” this cycle suggests that traders carrying leveraged positions from the weekend are particularly vulnerable when institutional and retail streams reenter early in the week.

“It’s dangerous to bring weekend optimism to Monday’s massive sessions,” the analyst observed, emphasizing that short-term leverage will increase losses in a predictable way.

For long-term investors, this cycle is not about price direction, but about understanding the risks of excessive leverage in highly liquid markets.

Technology level and broader market outlook

From a technical standpoint, Ethereum price adjustments are being closely monitored. Market analysts recently known as Crypto Patel Posted At X, its ETH has been raised from $4,957 to $4,400, focusing on $3,900-$4,000 as a strong support zone.

According to Patel, keeping this level could pave the way for a higher price range of $6,000-8,000. However, if the support is damaged, a $3,500 or $3,200 minus side level is still possible.

$ eth Price analysis

#ethereum It hit a $4,957 ATH two days ago and now it goes back to $4,400.
Strong support ranging from $3900 to $4000. Holding this zone will cost between $6,000 and $8,000.
A breakdown of $3,900 could lead to levels of $3,500 and $3,200. pic.twitter.com/wjtdheimqh

– Crypto Patel (@cryptopatel) August 26, 2025

The interaction between utilized liquidation and key technical support levels may define the trajectory of Ethereum in the coming months. Historical data shows that large outflows from exchanges often precede sustained gatherings, while inflows indicate normal sales pressure.

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ETH’s recent Exchange Netflow data is leaning towards leaks, suggesting that investors are independent of the coin.

At the same time, institutional demand for Ethereum continues to be strengthened, strengthened by continuing debate on ensuring integration within regulated financial instruments such as ETFS.

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Hong Kong’s financial regulators cautioned investors to avoid making impulsive bets on stablecoin-linked assets after a spate of sharp price swings tied to speculation, corporate announcements, and unverified claims about licensing plans in the city.

In a joint statement, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) said they had observed abrupt movements in share prices of companies linked to the stablecoin concept.

These shifts often followed news reports, social media posts, or statements suggesting that firms planned to apply for a stablecoin issuer licence, engage in related activities, or explore such initiatives locally. Some claims referenced discussions with the regulators themselves.

High bar for stablecoin licensing

Hong Kong introduced its stablecoin licensing regime earlier this year as part of a broader push to establish the city as a regulated hub for digital assets.

The HKMA said it applies a “rigorous and prudent” approach to reviewing applications, with stringent approval criteria and an expectation that only a small number will be granted in the initial phase.

HKMA Chief Executive Eddie Yue said dozens of parties have engaged with the regulator about licensing, but stressed that early communication and simply filing an application are not indicators of likely approval.

The process includes meeting capital, governance, risk management, and operational requirements designed to ensure the safety and stability of licensed stablecoins.

Investors cautioned

The SFC urged investors to remain clear-headed, conduct thorough research, and avoid decisions based solely on short-term price momentum or unsubstantiated online claims. It warned that volatility driven by hype could expose retail traders to significant losses.

SFC Chief Executive Julia Leung said the regulator will continue to monitor trading closely through its dedicated market surveillance team, which uses advanced systems to detect and investigate potential manipulation. She added that the agency intends to take strict enforcement action against any deceptive or misleading conduct.

The regulators also reminded companies and market participants to avoid making public statements that could mislead investors or create unrealistic expectations, noting that maintaining transparency and accuracy is critical to safeguarding market integrity during the rollout of Hong Kong’s stablecoin framework.

Bitcoin (BTC) has experienced a steady price decline over the past week, falling by approximately 3.7% as trading activity shows signs of a possible sell-off or profit-taking phase.

After peaking above $123,000 earlier last month, the leading cryptocurrency has been trading within the $113,000 to $114,000 range in the past day. At the time of writing, BTC is valued at $114,420, reflecting uncertainty in market momentum.

Market analysts point to weakening liquidity and inconsistent institutional demand as key factors contributing to the price drop. A recent analysis shared by Arab Chain, a contributor to CryptoQuant’s QuickTake platform, highlights several on-chain dynamics that have limited Bitcoin’s ability to maintain price stability despite reduced available supply.

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Liquidity Constraints and Market Fragility

According to Arab Chain’s analysis, a sharp collapse in the liquidity inventory ratio began in mid-July, falling to levels representing just over three months of available supply on major trading platforms.

This metric tracks how much Bitcoin is accessible for sale relative to the pace of market activity. Normally, reduced supply would lead to upward price pressure. However, Arab Chain notes that insufficient new demand left the market vulnerable, resulting in the opposite effect.

“When liquidity is thin and there is no consistent buying activity from large investors or ETFs, even small sell orders can lead to significant price drops,” Arab Chain explained. This behavior mirrors “thin market” conditions, where limited order book depth magnifies volatility and makes prices more susceptible to sudden downward moves.

The analysis suggests that market fragility could persist unless fresh demand enters the market. Historically, periods of constrained liquidity combined with a lack of large-scale buyers have led to prolonged corrections in Bitcoin’s price trajectory.

ETF Demand Volatility and Weak Accumulation

Another factor influencing the recent decline has been the erratic demand for Bitcoin-linked exchange-traded funds (ETFs). Arab Chain observed sharp fluctuations in ETF inflows, with rapid surges followed by strong outflows, leaving no consistent institutional support to stabilize prices.

This inconsistent participation from ETFs, which have become a major driver of Bitcoin demand since their approval, contributed to weaker price resilience during sell-offs.

Additionally, on-chain data showed that “smart portfolios,” or high-value addresses typically associated with strategic accumulation, exhibited only modest buying activity during the recent downturn.

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Although accumulation signals long-term confidence, its slow and limited pace failed to counterbalance selling pressure in real time. This lack of immediate demand further weakened market support.

Additionally, while investors closely monitor liquidity conditions, ETF flows, and long-term holder activity for signs of a potential rebound. Analysts suggest that sustained institutional buying or an uptick in accumulation from large addresses could help restore stability.

Until then, Bitcoin may remain in a vulnerable position, with its price movement largely dependent on shifts in demand and available liquidity.

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Strike founder Jack Mullers argued in a video shared on X that structurally high Bitcoin prices have emerged as a necessary component of US fiscal management, linking stubcoin growth with US government debt demand. Framing the newly introduced genius stubcoin law as “a critical moment of digital assets and the domination of the world’s dollars,” Mullers said the bill “has nothing to do with Bitcoin.”

Bitcoin and gold must rise to avert the US fiscal crisis

Mullers displayed a chart of Tether’s market capitalization along with the price of Bitcoin, saying, “In Green, Tether, Market Capital, and what you see in Orange is Bitcoin. He then linked that relationship with federal funding. Stubcoin issuers, especially Tether, hold a massive amount of US Treasury. Therefore, the larger Stablecoin float leads to a progressive structural demand for US debt.

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Mullers said he has “confined” the US financially, saying, “We know that the US cannot raise interest rates and can’t cut spending. So we are trapped. The next logical step is that we need to devalue the dollar. That’s the only way.” The policy question he continued is the assets that the dollar should be allowed to oppose. “Don’t deduce dollars against a house…Don’t deduce dollars against an egg…My recommendation, deduce it against Bitcoin and gold.”

Predicting a scenario where Bitcoin will reach $500,000 – “It’s five times from here” – Mullers argued that such a move would “five times” to “five times” and create “five times the demand for US debt,” he said, and that it doesn’t want your debts to be a traditional foreigner and domestic buyers who won’t tire of it.”

He compared the Treasury funding needs, the expansion of the Federal Reserve balance sheet and the positive integrity of the composition of the stubcoin reserve to previous historic episodes.

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At “130%” from US debt to GDP, a substantial reduction in terms of conditions requires a financial collapse led to politically acceptable assets inflation. He extended the story to politics, highlighting policy moves such as “the president and his family just bought $2 billion worth of Bitcoin” and “the US retirement market to Crypto Investments.”

Mallers said that placing Bitcoin and Gold in a retirement account allows policymakers to “base the dollar and re-election.”

He came to the conclusion by modifying the mechanisms he thinks are emerging from the bill. “Stubcoin is a new way to fund the government, but it grows as Bitcoin grows. One way to grow stubcoin is to grow Bitcoin.

At the time of pressing, BTC was traded for $118,055.

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A group of experienced Bitcoin developers has outlined a new proposal to prepare the network for the inevitable threat of quantum computing.

The initiative, led by Jameson Lopp, Christian Papathanasiou, Ian Smith, Steve Vaile, and Pierre-Luc Dallaire-Demers, focuses on safeguarding vulnerable Bitcoin held in older address types that may be compromised by future quantum breakthroughs.

25% of Bitcoin faces quantum computing risk

The proposal noted that around 25% of all Bitcoin eventually could be at risk if a cryptographically capable quantum computer emerges.

According to the developers, these assets are held in addresses that have already exposed their public keys, making them potential targets for these sophisticated computing machines.

Due to this, the developers stressed that this is not a hypothetical issue for the distant future but a serious risk that requires proactive mitigation.

They warned that a successful quantum attack wouldn’t just impact market value; it could severely undermine trust in the network’s ability to function securely. They stressed:

“An attack on Bitcoin may not be economically motivated – an attacker may be politically or maliciously motivated and may attempt to destroy value and trust in Bitcoin rather than extract value. There is no way to know in advance how, when, or why an attack may occur. A defensive position must be taken well in advance of any attack.”

Three-phase strategy for a quantum-safe transition

To prepare for this threat, the team has laid out a three-phase plan to gradually migrate users from quantum-vulnerable addresses to post-quantum secure alternatives.

The first phase would allow Bitcoin to be sent only to new address types called P2QRH, thereby nudging the network toward quantum resilience. This transition is expected to begin three years after the implementation of BIP-360.

The second phase would invalidate all spends from legacy cryptographic signatures, effectively freezing unupdated addresses after a predetermined block height. According to the developers, this could be roughly five years after phase one begins.

The third and final phase would provide a method for users who missed the migration window to recover their legacy funds using zero-knowledge proofs tied to their seed phrases. However, this step is still under research and would be optional.

Community reaction

Jacob Youngman, a Bitcoin commentator, expressed concern that the changes might lead to the confiscation of inactive or legacy-held coins, possibly including those linked to Satoshi Nakamoto.

According to him:

“The best we can do would be to give users an opt-in solution that protects them from quantum computers.”

However, Lopp addressed the criticism, stating that inactive wallets are just as likely to be exploited by malicious quantum actors if no action is taken.

Mentioned in this article

The crypto market is slightly bouncing back from early Friday’s jitters on escalating conflict between Israel and Iran.

After slumping to the $102,600 mark, bitcoin

rebounded to around $106,000 before fading lower in the U.S. afternoon hours with reports about a fresh wave of airstrikes targeting Iran. The top cryptocurrency was down 1.6% in the last 24 hours, changing hands at $105,200 and still less than 6% shy of its all-time high price.

Meanwhile, the CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization, excluding memecoins, stablecoins and exchange coins — has lost 4.4% in the same period of time. Tokens such as ether

, avalanche and toncoin were the hardest hit, slumping between 6% and 8%.

Crypto stocks, however, aren’t doing too hot. Most equities are in the red, especially bitcoin miners MARA Holdings (MARA) and Riot Platforms (RIOT), down 5% and 4% respectively. A notable exception is stablecoin issuer Circle (CIRCL), which is still benefiting from the windfall of its recent IPO; the stock is up 13% today, with news of retail giants Amazon and Walmart reportedly exploring stablecoins adding to the momentum.

Traditional markets don’t seem overwhelmingly concerned by the war. While gold is up 1.3%, potentially gearing up for new all-time highs, the S&P 500 and Nasdaq are only down 0.4% each.

What’s next for bitcoin?

“Nice bounce thus far and lack of follow-through lower,” well-followed crypto trader Skew said in a Friday X post. Market participants will likely remain cautious through the weekend with BTC tightly correlated with traditional markets amid heightened geopolitical risks, Skew added.

On the longer timeframe, some analysts see risks of a deeper pullback.

10x Research founder Markus Thielen noted that BTC’s drop below $106,000 translates to a failed breakout, and traders should wait for more favorable setups before rushing to buy the dip.

He highlighted the $100,000-$101,000 zone as key support, warning that a break below could mark a return to the broader consolidation phase similar to last summer.

John Glover, chief investment officer at bitcoin lender Ledn, argued that bitcoin entered a corrective phase from its record highs that could see the largest digital asset drop to $88,000-$93,000.

He said the $90,000 level could offer a favorable entry for opportunistic investors before BTC resumes its uptrend.

“Once this pattern has played out, the next move higher to the $130,000 area is expected to begin,” he said.

Per the newspaper Chungnyun Ilbo, experts say that US dollar-based stablecoins could have an impact on exchange rates and fiat currencies.

Stablecoin Danger for South Korean Economy?

The comments came at a digital assets-themed meeting of the Korea Economic Association at the FKI Tower Conference Center in Yeouido, Seoul, on May 19.

An expert panel expressed concerns about the possible proliferation of dollar-based stablecoins in South Korea.

The panel argued that stablecoin usage would reduce the volume of won-based payments made by both individuals and corporations in South Korea.

It also claimed that the central Bank of Korea (BOK) could suffer as a result. The BOK, experts said, could lose the ability to manage money supplies or intervene in the foreign exchange markets.

The BOK has made similar statements in recent days, in response to stablecoin-related manifesto pledges from the leading presidential candidate Lee Jae-myung.

KRW Stablecoin on Political Agenda

Lee Jae-myung has pledged to launch a KRW-pegged stablecoin if he is elected President on June 3. Members of his party, the Democratic Party, have also argued that financial regulators – and not the BOK – should have the final say on stablecoin issuance.

But others want to use existing stablecoins in their adoption drives. They claim that failing to adopt is hampering Seoul’s tech competitiveness.

These advocates favor allowing South Korean firms and payments companies to work with high-cap stablecoins like USDT and USDC.

However, Lee Seung-seok, a senior researcher at the Korea Economic Research Institute, warned:

“If dollar-based stablecoins become established as a means of payment in South Korea, this could bring about structural changes in the won/dollar exchange rate determination mechanism. Exchange rates could soar due to a drop in KRW demand and an increase in demand for foreign currency.”

The researcher added that dollar-based stablecoins allow for rapid capital mobility. He added that their decentralized nature “could result in large-scale capital outflows in the event of a crisis.”

Kim Hyo-bong, a former Financial Supervisory Service official, said that Washington and Brussels were both likely to launch stablecoin legislation in 2025. Kim said:

“South Korea should also make sure it acts in line with global trends.”

Kang Tae-soo, a visiting professor at the KAIST Graduate School of Finance and a BOK Monetary Policy Committee member, said that stablecoins offer firms advantages in the payment and settlement spaces.

But Kang concurred that stablecoins were difficult to control. He said they could sow uncertainty in the monetary and foreign exchange policy sectors.

The academic argued that the BOK and the government needed to ensure adoption drives “minimize side effects and maximize advantages.”

However, others warned against the dangers of over-regulation. Namgung Joo-hyun, an Associate Professor of Commercial Law at Sungkyunkwan University, said that the “global digital asset paradigm is rapidly changing.” He said:

“We must take steps to ensure South Korea does not end up isolated due to excessive regulations. We need to establish a financial framework that provides both international consistency and industrial competitiveness.”

A War of Words

Meanwhile, the presidential candidates’ stablecoin war of words continues. During the first televised debate between the four leading candidates for the June 3 poll, Lee Jae-myung reiterated his commitment to launching a KRW-pegged coin.

But EToday reported that Lee Jun-seok, of the rival Reform Party, challenged the frontrunner on the matter.

Lee Jae-myung refuted Lee Jun-seok’s challenge, claiming that “stablecoins based on fiat won collateral are stable.”

However, Lee Jun-seok claimed that there were “no use cases” for any sort of stablecoins that use a peg other than the USD.

He continued, explaining that USDC and USDT, combined, “account for 90% of the stablecoin market.” Lee Jun-seok asked the frontrunner what measures he would take “to prevent the illegal circulation of stablecoin funds, such as remittances to North Korea.”

The post South Korean Experts Warn Seoul of Mounting ‘Stablecoin Danger’ appeared first on Cryptonews.

Amid its recent breakout, Ethereum (ETH) has recovered a crucial Range lost in Q1, preparing to surge to the mid-zone of this area. However, various analysts forecast potential volatility for the King of Altcoins, as it faces some resistance at the current levels.

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Ethereum To Trade Sideways Before Next Jump

After surging nearly 45% in the past week, Ethereum has reclaimed its $2,200-$3,900 macro range lost in March. During the late-April market pump, the cryptocurrency recovered from its 18-month low of $1,380, jumping toward the $1,800 resistance before breaking out last Thursday.

ETH has smashed past the $2,000 resistance and regained the crucial $2,100 and $2,300 levels before retesting the $2,600 resistance over the weekend. Since then, the King of Altcoins has hovered between the $2,400-$2,600 price range, hitting a two-month high of $2,624 on Monday.

Market watcher Castillo Trading highlighted that Ethereum is “doing exactly what it should be. Taking some time to build a base at important levels before the next move.”

The analyst stated that the $2,400-$2,700 zone will likely be ETH’s trading range for the upcoming days after its retest of the range lows as support, with “some shakeouts in both directions before continuing its next leg up.”

Similarly, Daan Crypto Trades noted that the cryptocurrency’s current level is important, as it could determine its short-term direction. According to the trader, Ethereum could drop to $2,300 or below the $2,100 support level if it loses the key area. “In that case, you can simply wait for a consolidation to be formed at those levels,” he explained.

On the contrary, if ETH breaks past the $2,600 resistance, and price keeps surging, the current level may “become a nice retest of the horizontal.” Notably, the next crucial horizontal level sits around the $2,850-$2,900 range, a significant support and resistance area amid the Q3 2024 pullback and the Q4 2024 breakout.

Is A Dip Or A 15% Shakeout Coming?

Analyst Rekt Capital pointed out that Ethereum secured a key Weekly Close after closing the week at $2,514 and officially reclaiming its Macro Range. According to the analyst, history suggests that ETH will “likely lift across the Range” over time, while “any dips, if needed at all, would only solidify $2200 as Range Low support.”

He stressed that the recent Weekly Close occurred at the top of a crucial cluster, enabling a scenario where “just a small dip would suffice, if the green circled retest repeats here at ~$2468 (black).”

However, if that level is lost, ETH could see a 10%-15% pullback toward the $2,200-$2,100 mark. Rekt Capital also remarked that the second-largest crypto by market capitalization has managed to fill the $2,530-$2,630 Daily CME Gap, created in March.

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Amid its breakout, ETH also formed two small CME Gaps at the $2,300-$2,400 and $2,100-$2,200 levels, which could be closed soon. The former is the “more important dipping area, as it is also a Weekly CME Gap.”

Additionally, he affirmed that Ethereum intends to fill its Macro CME Gap, between $2,900 and $3,350, signaling that a surge toward those levels could be ahead.

As of this writing, Ethereum trades at $2,597, a 5% increase in the daily timeframe.

Featured Image from Unsplash.com, Chart from TradingView.com

The US dollar could suffer a major sell-off by Asian investors and exporters triggered by trade tensions, according to a pair of macroeconomic and currency strategists.

Eurizon SLJ Capital’s analysts Stephen Jen and Joana Freireat say in a new investment note that Asian investors have accumulated a massive pile of USD that could be ditched en masse if trade wars intensify and the dollar weakens, reports Bloomberg.

According to the analysts, if the US-driven trade conflict grows, a significant number of Asian investors could bring substantial capital back home or seek to bolster their defenses against a declining USD.

That, they warn, could leave the dollar facing a $2.5 trillion “avalanche” of selling.

“We suspect these dollar hoardings by Asian exporters and institutional investors may be extremely large – possibly on the order of $2.5 trillion or so – and pose sharp downside risks to the dollar vis-à-vis these Asian currencies.”

Bloomberg says its dollar gauge has dropped about 8% from a February high. Meanwhile, Asian currencies have strengthened versus the greenback in the past month.

President Trump signed an executive order in April that imposed a 10% tariff on all imported goods entering the US, with the stated aim of increasing domestic manufacturing. The President also issued a proclamation that slapped reciprocal tariffs on dozens of countries.

The Trump administration says it is currently engaging with more than a dozen countries around the world to craft new trade deals.

Meanwhile, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet with their Chinese counterparts to discuss trade and economic issues in Switzerland this week.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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