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Could a 4x Rally Follow?

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Could a 4x Rally Follow?


Another analyst noted in the meantime that the Ethereum network activity has picked up the pace after a solid decline earlier this year.

Ethereum’s price has fought for $2,000 for a month now, but the bears have taken advantage once again after another 4% decline on a weekly scale. The macro charts are even more painful for the largest altcoin, which barely broke its 2021 all-time high in 2025, but now trades over 60% away from it.

According to a few analysts, though, the landscape around it could change soon due to the rising network activity and previous cycle moves. History has shown that ETH has posted incredible returns after it successfully defended a zone that it’s currently testing.

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Can ETH Rocket by 4x Next?

Merlijn The Trader said in a Saturday post on X that “Ethereum is entering the zone that decided the last cycle.” Four years ago, it bottomed after sweeping the liquidity inside the $1.2K-$1.6K range. Technical tools like the RSI show that it’s approaching an oversold territory again, and Merlijn predicted that if it holds the $1.6K level, “buyers regain control.”

However, if it falls below the lower boundary of that range, “deeper liquidity becomes the target.” The last time this zone was tested and defended successfully, the analyst said ETH skyrocketed by 4x. A similar surge now would take it well beyond its all-time high of nearly $5,000.

In a subsequent post, Merlijn doubled down that ETH is at a “make-or-break level,” as the price has respected this rising trendline for years. It has neared the $2,000 level, and the next major move could be determined whether it will defend it or not.

Rising Network Activity

Meanwhile, fellow analyst CW noted that there’s a notable uptick in the network activity on Ethereum. The transactions peaked at over 2.5 million at the beginning of the year but quickly plunged to under 2 million. However, they have gone above that level as of the latest data.

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Similar developments mean that investors and users are more inclined to use the network, which is generally a bullish sign for the underlying asset.

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Crypto World

US Treasury Says ‘Lawful’ Crypto Users Have Valid Reasons To Use Mixers

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Privacy

The Treasury’s report to the US Congress was commissioned as part of directives under the GENIUS stablecoin regulatory framework.

The United States Treasury Department acknowledged the legitimate use of mixers, which obfuscate crypto transfers to preserve user privacy, in its report to Congress on “Innovative Technologies to Counter Illicit Finance Involving Digital Assets.” 

“As consumers increase their use of digital assets for payments, individuals may want to use mixers to maintain more privacy in their consumer spending habits,” the report said. The Treasury report continued:

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“Lawful users of digital assets may leverage mixers to enable financial privacy when transacting through public blockchains. For instance, individuals may use mixers to protect sensitive information on personal wealth, business payments or charitable donations from appearing on a public blockchain.”

Privacy
The report to Congress from the Treasury Secretary on countering illicit finance in crypto. Source: US Treasury Department

However, the report also noted the dangers of “darknet” or non-custodial, decentralized mixers. The Treasury said that non-custodial mixers are used for money laundering or shifting illicit funds by cybercriminals, including North Korea-linked hackers.

The authors suggested that custodial mixers, centralized services that take possession of user funds during the process, could provide identifying information that could be used to track users and transaction flows. 

Privacy
A simplified graphic illustrating how crypto mixers work. Source: Cointelegraph

Privacy in crypto became a hot-button issue in 2025, as financial surveillance increases and US lawmakers attempt to impose know-your-customer (KYC) requirements on digital asset service providers and even decentralized finance (DeFi) platforms.

Related: Dash Evolution chain integrates Zcash Orchard privacy pool

DeFi leaders and seasoned investors warn about the threat to privacy

DeFi leaders and advocates sounded the alarm on ambiguous language in the Digital Asset Market Clarity Act of 2025, also known as the CLARITY bill, that could force DeFi platforms to collect identifying information from users.

The bill also lacked sufficient protections for open-source software developers in the US, according to Alexander Grieve, vice president of government affairs at crypto investment company Paradigm.

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Former hedge fund manager Ray Dalio also warned that central bank digital currencies (CBDCs), onchain fiat currencies managed by a central banking institution or the government, are coming and pose a major risk to digital privacy.

In an interview with independent journalist Tucker Carlson, Dalio said CBDCs are a “very effective controlling mechanism” for the government. 

Magazine: Can privacy survive in US crypto policy after Roman Storm’s conviction?