Ethereum’s primary token, Ether (ETH), has seen its value nearly halved just two months after Eric Trump, the son of former US President Donald Trump, encouraged his 5.7 million followers to consider investing in the leading altcoin, calling it a “great time” to do so.
As of March 31, Ether was trading as low as $1,820, down around 40% since Eric Trump’s optimistic tweet. Additionally, during this period, Ether’s share of the cryptocurrency market fell from 10.28% to 8.39%, marking its lowest point since 2020.
Traders have faced numerous market challenges following Eric Trump’s remarks. For example, on February 21, the cryptocurrency exchange Bybit experienced a significant security breach, losing around $1.5 billion in Ether, the largest theft of its kind to date. Furthermore, the escalating tariffs imposed by President Trump on imports from Canada, Mexico, and China have contributed to selling pressure across Ethereum and the wider crypto landscape. The introduction of a 25% tariff on auto imports, scheduled to take effect on April 3, has further dampened market sentiment.
Michaël van de Poppe, co-founder of a crypto portfolio management firm, expressed skepticism about a potential recovery in Ether’s price in the near term. He noted that the market might see a bottom for ETH when gold prices peak. Gold, regarded as a traditional safe-haven asset, has surged 17.60% year-to-date, reaching a record high of $3,085 per ounce.
Meanwhile, World Liberty Finance, a decentralized finance company linked to the Trump family, transferred 73,783 ETH, valued at approximately $212.60 million at the time, to Coinbase Prime just two days after Eric Trump’s tweet. This close timing has sparked speculation within the cryptocurrency community regarding the intentions behind the transfer, despite WLFI’s clarification that it was a standard treasury management move rather than a sign of plans to liquidate holdings.
WLFI has conducted several multimillion-dollar crypto transactions ahead of significant events related to the former President, including purchasing $20 million worth of various tokens in the days leading up to the March 7 White House Crypto Summit, raising questions about their strategic intent. Additionally, concerns have been voiced regarding Donald Trump’s new stablecoin, USD1, highlighting potential conflicts of interest.
Following the transfer on February 23, WLFI has more than tripled its Ether holdings. However, even with this aggressive accumulation and an overall increase in whale holdings of ETH, bullish sentiment in the Ethereum market remains tepid.
Looking ahead, technical indicators suggest that Ether’s price could dip below $1,500 in April, marking a decline of about 20% from current levels. As of March 30, the ETH/USD pair had entered a bearish phase, appearing to form a bear flag pattern.
This pattern typically develops when prices consolidate after a significant drop, often resulting in a breakdown below its lower trendline, potentially leading to further declines based on previous declines. Using this technical analysis, a target of $1,490 is projected for Ether by April.
However, there remains a glimmer of hope for bullish traders. If there is a sharp recovery from the current support level around $1,800, it could invalidate the bear flag pattern, possibly setting off a double-bottom formation. This would allow for an upward rebound in Ether’s price toward $2,500 by April.
A double-bottom pattern generally forms after a period of sustained decline, featuring two distinct troughs at similar price levels, followed by a breakout above a resistance point, known as the neckline. Ether has already formed two troughs around the $1,800 support zone, with the neckline resistance set near $2,094. A decisive move above this neckline could confirm the bullish pattern and set a recovery target of about $2,500, reflecting a 35% increase from current prices.
This piece does not constitute investment advice or recommendations. All investment and trading activities carry risk, and readers are encouraged to perform their own due diligence before making any financial decisions.