After temporarily dropping beneath critical support levels, Ethereum (ETH) is on the rise once more. Following a significant shift in market sentiment, the second-largest virtual currency by market capitalization surged past $2,900.
Related Reading
Notably, Eric Trump, the offspring of US President Donald Trump, commented on the situation, suggesting that it presents a strategic chance to acquire ETH.
Tariff Suspension Triggers Market Recovery
Fears regarding potential tariffs on Canada and Mexico unsettled the cryptocurrency market earlier this week. Both Bitcoin and Ethereum saw considerable declines, with Ethereum dipping briefly to around $2,360. However, the temporary halting of tariffs by Trump provided a respite, boosting investor confidence in risky assets, including cryptocurrencies.
In the aftermath of the announcement, Ethereum witnessed a vigorous rebound, with an almost 20% rise. Traders viewed this as a signal to re-enter the market, and ETH swiftly regained the $2,900 milestone.
In my opinion, it’s a great time to add $ETH.
— Eric Trump (@EricTrump) February 3, 2025
Eric Trump’s Crypto Endorsement Raises Eyebrows
Eric Trump shared his positive perspective on Ethereum on social media. He initially remarked, “In my opinion, it’s a great time to add $ETH. You can thank me later.” Although the latter part of his message was removed, cryptocurrency investors resonated with his endorsement of Ethereum’s forthcoming advancements.
The Trump family has been progressively engaged in the digital asset realm, particularly via their World Liberty Financial platform. This latest comment highlights their engagement and potential long-term commitment to blockchain innovation.
World Liberty Financial’s Major Ethereum Transaction
World Liberty Financial recently executed a significant transaction in the cryptocurrency sector, further fueling speculation. The firm transferred over $300 million in assets to the custody platform of Coinbase, according to blockchain analysis firm Spot On Chain. In addition, they purchased an extra 1,826 ETH for around $5 million and converted nearly 20,000 Lido Staked Ether (stETH) into ETH.
World Liberty Financial (@worldlibertyfi) transferred $307.41M in 8 assets to #CoinbasePrime 6 hours ago—as part of treasury management and business operations.
Shortly thereafter, the project unstaked 19,423 $stETH into $ETH and additionally spent 5M $USDC to purchase 1,826 $ETH at $2,738.… https://t.co/Rp9NAFUs5N pic.twitter.com/5bfIvJma7U
— Spot On Chain (@spotonchain) February 4, 2025
These operations suggest that the firm is preparing for the launch of its “Earn and Borrow” lending protocol. Although the protocol is still in development, the substantial transfers indicate that the platform could soon take on a significant role in decentralized finance (DeFi).
Related Reading
The Outlook for Ethereum Remains Encouraging
As institutional interest continues to grow and the price of the leading altcoin has regained higher levels, Ether remains a focal point in the crypto market. Macroeconomic factors, strategic investments, and political influences combined present an intriguing dynamic for ETH’s future trajectory.
Featured image from Gemini Imagen, chart from TradingView