Crypto Price Analysis August 25: Bitcoin, Ethereum

Bitcoin (BTC) experienced a swift bullish reversal above $117,000 on Friday, following Federal Reserve Chair Jerome Powell’s hints at a potential September interest rate cut during his speech at Jackson Hole. This power candle follows a 7-day retreat from new all-time highs above $124,000. 

According to data from Coinglass, $336.26 million in short positions were liquidated over the past 24 hours, with Ether (ETH) accounting for $271.25 of the total number, having soared by at least 10% in the same period. 

Across board, however, 181,209 traders were liquidated of a total $753.17 million within the last 24 hours. 

Bitcoin (BTC) Price Analysis

The BTC/USDT chart from TradingView shows a period of consolidation as the market enters a corrective phase following Bitcoin’s new all-time highs. While the Friday boost gave bulls a fighting chance, the BTC price appears to be testing critical moving average supports.

The recent rejection reflects profit-taking by long-term holders and short-term traders alike. The price has now fallen below the 20-day EMA ($116,251) but is finding support near the 50-day MA (around $115,000). This moving average has served as a key support level during previous uptrends. The 100-day and 200-day EMAs, as well as the 200-day MA are well below the current price, indicating that the long-term trend remains firmly bullish.

Bullish Scenario

If Bitcoin holds above the 50-day EMA ($114,938), it could signal strength despite the recent correction. A rebound from this level may push BTC back above the 20-day EMA ($116,251), opening the door to retest $120,000 and potentially challenge the $125,000 resistance once more. A confirmed breakout above $125,000 would likely attract momentum buyers and extend the uptrend toward the $135,000–$140,000 range.

Bearish Scenario

Failure to hold the EMA 50 could accelerate selling pressure, especially if BTC closes below $114,000. In that case, downside targets lie at the EMA 100 ($110,769) and the psychological $110,000 support. A break below these levels could extend the correction toward the EMA 200 ($103,509) or even the 200-day SMA ($100,694), which would mark a deeper retracement of the 2025 rally.

Ethereum (ETH) Price Analysis

The potential rate cut in September seems to have better-favored Ether (ETH) which hit new all-time highs above $4880 on Friday. Impressively, Ether has surged by over 250% since its April lows of $1385. 

Ethereum has staged an impressive rally since late July, climbing within an ascending channel that has carried price action from the $3,400 region to recent highs above $4,800. Momentum has been largely fueled by strong bullish sentiment, though the latest rejection near the channel top signals ongoing resistance pressure.

The ascending channel has guided the price action since July, respecting both the upper and lower trendlines. The price is also trading well above the key moving averages, with the 20-day EMA ($4269) acting as the major immediate support level. The bullish alignment of the EMA cluster confirms the strong long-term bullish momentum, should the market sentiment remain positive.

Bullish Scenario

For now, ETH continues to respect the ascending channel. As long as it holds above the 20-day EMA ($4,269), the bullish structure remains intact. Immediate resistance lies around $4,830–$4,850 (recent highs). 

A breakout above this level could open the path toward $5,100–$5,200, the upper channel boundary, with potential to extend towards $5,500 if momentum accelerates.Higher lows around $4,050–$4,200 strengthen the bullish bias, confirming that buyers are stepping in at key levels.

Bearish Scenario

While the bullish case is strong, a break of key support could lead to a more significant correction. The primary risk for the bullish case is a decisive breakdown below the lower trendline of the ascending channel which doubles as the 20-day EMA. A daily close below this trendline could invalidate the bullish channel pattern and signal a potential trend reversal or a deeper correction.

A break below $4,200 would expose ETH to the 50-day EMA ($3,797), which aligns with psychological support near $3,800. If this zone fails, the next major supports sit at $3,325 (100-day EMA) and $2,992 (200-day EMA), respectively.