Eric Trump created a stir on February 4, 2025, by publicly supporting Ethereum (ETH) on his X platform, formerly known as Twitter, encouraging his followers to invest in the cryptocurrency. Despite this endorsement, Ethereum’s value has since taken a significant dip of 22%. Notably, there has been a notable uptick in large-volume transactions, with a total accumulation of 110,000 ETH observed within a mere 72-hour timeframe.
Given the mixed signals prevailing in the market, one is prompted to ponder whether prominent investors are strategizing for an impending upturn or if the overall trend continues to point downwards.
Assessment of Eric Trump’s Backing and Subsequent Price Fluctuations
The initial boost triggered by Trump’s endorsement was short-lived, quickly fizzling out without a sustained rally. As a consequence, Ethereum underwent a 22% drop in value, sparking debates about the enduring effects of his public declaration of support.
Various factors have played a role in this price downturn. Notably, the $1.5 billion Bybit exchange breach on February 25 significantly dented investor confidence, triggering a broader market sell-off. Furthermore, waning excitement following President Donald Trump’s term in office, in conjunction with unmet hopes for a pro-cryptocurrency regulatory environment, has subdued market enthusiasm. Global economic uncertainties have also exerted downward pressure on Ethereum’s valuation.
Whale Accumulation: Indication of Confidence or Strategic Maneuver?
Despite Ethereum’s 22% decline, there has been a surge in whale activity, with a substantial accumulation of 110,000 ETH within just 72 hours. Data from Santiment underscores a notable spike in large transactions, hinting at a potential positioning by major investors in anticipation of a market recovery or a tactical move to leverage discounted prices.
Historically, instances of similar accumulation phases have often been succeeded by robust market rebounds, albeit not without exceptions.
In the past, peaks in ETH price coincided with heightened whale activity, with subsequent accumulation phases correlating with brief positive movements. Maintaining the $2,100–$2,135 range may bolster bullish confidence. Conversely, a sustained breach below this threshold could signal whales securing liquidity prior to a more pronounced market correction.
Ethereum: Balancing Whale Confidence with Bearish Trends
The oversold Relative Strength Index (RSI) at 38.90 and a deepening bearish cross in the Moving Average Convergence Divergence (MACD) signal a potentially prolonged market downturn. The 50-day Simple Moving Average (SMA) at $2,929 significantly outpaces Ethereum’s current value at $2,109, amplifying bearish sentiments.
To validate a short-term rally, a resurgence beyond the $2,200–$2,300 range by whales anticipating a market rebound could offer confirmation.
For retail investors, exercising caution remains crucial. Failure by ETH to maintain crucial support levels may indicate a forthcoming demand zone around $1,900–$2,000. While whale transactions can provide insights, particularly amidst a broader market decline, retail traders should await clear signals of a trend reversal before aligning with investor sentiment.