Ethereum can reach the $5,000 watermark in 2025; ‘Wooden Snake’ may help

This week, China and the world
will celebrate the coming of the Year of the Wood Snake. According to Chinese
tradition, the snake represents intelligence and transformation. It is often a
symbol of mystery and wisdom. Wood adds the qualities of growth and flexibility. Perfect timing! Today, these qualities are
more relevant than ever to the cryptocurrency market.

In 2025, popular
cryptocurrencies show different dynamics: Bitcoin is up 8%, Ethereum is down 6%
as of 27 January 2025, despite uncertain regulatory developments. U.S. President Donald Trump signed an
executive order significantly revamping the national cryptocurrency policy. The
order established a dedicated cryptocurrency working group to propose new
regulations, safeguarded banking services for crypto companies, and prohibited
the creation of a competing U.S. central bank digital currency.

Additionally,
it repealed burdensome accounting guidelines that had previously stifled
digital asset adoption—a notable victory for the crypto industry. However, some
investors remain sceptical, showing limited enthusiasm despite these
advancements. The cryptocurrency market is seeing a sharp decline on Monday, 27
January, with Bitcoin dropping below $100,000 to an 11-day low. This downturn
is largely driven by a significant selloff in the technology sector, which has
sparked a broader risk-off sentiment among investors. As cryptocurrencies are
often considered high-risk assets, this shift in market mood has weighed
heavily on their performance.

Additionally, caution
surrounding the Federal Reserve’s upcoming meeting is adding to the pressure.
Investors anxiously await decisions on interest rates, with concerns that the
Fed may keep rates elevated for a prolonged period. This uncertainty about monetary
policy has heightened market unease, further contributing to the decline in
cryptocurrency valuations.

Therefore, the snake pattern
and consolidation of ETHUSD that has formed in recent months may be replaced by
a sharp move, after the adoption of new regulations or clear signals on the Fed
Funds rate.

About Octa

Octa is an
international broker that has been providing online trading services worldwide
since 2011. It offers commission-free access to financial markets and a variety
of services used by clients from 180 countries who have opened more than 52
million trading accounts. To help its clients reach their investment goals,
Octa offers free educational webinars, articles, and analytical tools.

The company is involved in a
comprehensive network of charitable and humanitarian initiatives, including the
improvement of educational infrastructure and short-notice relief projects
supporting local communities.

Since its foundation, Octa has won
more than 90 awards, including the ‘Most Reliable Broker Global 2024’ award
from Global Forex Awards and the ‘Best Mobile Trading Platform 2024’ award from
Global Brand Magazine.

This article was written by FL Contributors at www.forexlive.com.