The Ethereum price experienced a temporary uptick after Eric Trump’s endorsement, but the cryptocurrency has dropped nearly 40%. This huge fall shows the uncertain nature of cryptocurrency markets, where famous approvals can lead to temporary price swings rather than continuous growth.
Eric Trump’s Ethereum Endorsement
Eric Trump’s Ethereum endorsement on February 3, 2025, drew significant attention. This followed World Liberty Financial’s purchase of 1,826 ETH worth $5 million. The Ethereum price increased from $2,300 to $2,900 within 24 hours, recovering the losses incurred after President Trump’s tariff announcement.
The endorsement led to a record trading volume of $38 billion, demonstrating Ethereum’s instability and the impact of high-profile sponsorships on crypto markets. This event also emphasized the growing public approval of crypto, with the Trump family becoming interested in the sector.
After Eric Trump’s endorsement, Ethereum’s price dipped over time, down roughly 40% at the time of writing. Another contributor to this slump is the security breach at Bybit, which led to the loss of $1.5 billion ETH.
Furthermore, President Trump’s increasing trade war against Canada, Mexico, and China negatively affected market sentiment, impacting Ethereum’s price. As of March 31, the Ether price traded as low as $1,818, with its market share also down to its lowest since 2020, from 10.28% to 8.39%. Despite these obstacles, some analysts think Ethereum may recover in April due to greater institutional involvement.
Community and Market Analysis
The crypto community remains dubious by endorsements like Eric Trump’s, underlining that fundamentals rather than individual utterances drive market movements. Technical signs imply the price of Ethereum might face additional falls, even breaching below $1,500, if support levels fail to hold. Analysts underline the relevance of network upgrades and institutional adoption in deciding Ethereum’s future trajectory.
Despite recent instability, Ethereum’s popularity in DeFi and layer 2 growth continues to attract interest. Arbitrum and Optimism layer 2 solutions boost scalability and reduce transaction fees, making Ethereum more accessible to decentralized applications and DeFi initiatives.
The community’s cautious attitude underlines the necessity for a thorough market analysis that goes beyond celebrity influence and concentrates on technology improvements and macroeconomic concerns.
According to Coinbase, institutional interest is developing, with 70% of investors viewing Ethereum as a long-term investment. This interest is driven by Ethereum’s involvement in DeFi and, most likely, regulatory explanations, which might lead to increased adoption and price increases.
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