After momentarily sliding below important support levels, Ethereum (ETH) is once again on the climb. After a significant change in market mood, the second-largest digital asset by market capitalization passed $2,900.

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Interestingly, Eric Trump, the son of US President Donald Trump, weighed in on the situation, remarking that it is a strategic opportunity to acquire ETH.

Tariff Pause Sparks Market Rebound

Concerns over possible tariffs on Canada and Mexico rattled the crypto market earlier this week. Both Bitcoin and Ethereum fell significantly; Ethereum dropped momentarily to around $2,360. Still, the temporary suspension of the tariffs by Trump offered a breather, which raised investor confidence in risk assets including cryptocurrency.

In the wake of the announcement, Ethereum experienced a robust recovery, with a nearly 20% increase. Traders interpreted this as an invitation to re-enter the market, and ETH promptly reclaimed the $2,900 mark.

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 posted his optimistic view on Ethereum on social media. He first said, “In my opinion, it’s a great time to add $ETH. You can thank me later.” Although the subsequent section of his remarks was deleted, crypto investors saw resonance in his endorsement of Ethereum’s future development.

The Trump family has been progressively involved in the digital asset sector, particularly through their World Liberty Financial platform. This most recent statement serves to emphasize their involvement and potential long-term dedication to blockchain technology.

World Liberty Financial’s Significant Ethereum Transaction

World Liberty Financial recently made a substantial move in the crypto space, which has served to further fuel speculation. The firm transferred over $300 million in assets to Coinbase’s custody platform, according to blockchain analytics firm Spot On Chain. Furthermore, they acquired an additional 1,826 ETH for approximately $5 million and converted nearly 20,000 Lido Staked Ether (stETH) into ETH.

World Liberty Financial (@worldlibertyfi) moved $307.41M in 8 assets to #CoinbasePrime 6 hours ago—as part of treasury management and business operations.

Shortly after, the project unstaked 19,423 $stETH to $ETH and further spent 5M $USDC to buy 1,826 $ETH at $2,738.… https://t.co/Rp9NAFUs5N pic.twitter.com/5bfIvJma7U

— Spot On Chain (@spotonchain) February 4, 2025

These transactions indicate that the company is making preparations for the introduction of its “Earn and Borrow” lending protocol. Although the protocol is still in the process of being developed, the substantial transfers suggest that the platform could soon play a significant role in decentralized finance (DeFi).

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Ethereum’s Prospects Still Remain Positive

As institutional interest is rising and the price of the top altcoin has recaptured higher levels, Ether remains a central focus in the crypto market. Macroeconomic changes, strategic investments, and political influence taken together provide an interesting dynamic for ETH’s future course.

Featured image from Gemini Imagen, chart from TradingView

Eric Trump has addressed the ongoing debate surrounding the $TRUMP memecoin, a cryptocurrency launched by President-elect Donald Trump. This follows reports of a whale trader profiting nearly $12 million from trading the token shortly after its release. The launch, which has triggered significant controversy, has drawn responses from financial experts, crypto enthusiasts, and ethics watchdogs.

Eric Trump’s Take on $TRUMP Memecoin

Eric Trump, the son of President-elect Donald Trump, commented on the $TRUMP memecoin’s rapid rise, calling it the “hottest digital meme on earth.” The $TRUMP token, launched late Friday, surged in value within hours, becoming a top trending topic in the cryptocurrency space.

According to CoinGecko, its market capitalization exceeded $5 billion by Saturday afternoon, with trading volumes surpassing $11 billion. The token’s price more than doubled, reaching over $27 within 24 hours of its launch.

The memecoin is owned primarily by CIC Digital LLC, a company tied to Donald Trump, which holds 80% of the token’s supply. With an estimated $20 billion in assets on paper under the current market price, the launch has raised questions about the intersection of Trump’s financial interests and his upcoming presidency.

Peter Schiff, an economist and Bitcoin skeptic, weighed in on the rapid rise of the $TRUMP token. “It took Bitcoin four years to reach a $5 billion market cap. $TRUMP did it in one day,” he wrote on X. Schiff sarcastically suggested creating a strategic reserve for the memecoin and requiring its inclusion in retirement accounts. However, the comments drew mixed reactions, with some dismissing the comparison between Bitcoin and a newly launched meme-based cryptocurrency.

Whale Trader Profits $11.8 Million Amid Market Activity

A significant transaction involving the $TRUMP memecoin occurred hours after its launch, catching the attention of blockchain analysts. A whale trader, who reportedly spent $12 million purchasing 860,895 tokens at $13.94, sold the holdings at $27.67. The transaction resulted in an $11.8 million profit, showcasing the high volatility of the token in its early trading hours.

This development has sparked concerns over the stability of the memecoin and the potential for market manipulation. Critics argue that speculative trading could harm smaller investors entering the market at inflated prices.

Prominent figures, including former White House communications director Anthony Scaramucci, criticized the event. Scaramucci called the launch “an alarming level of corruption,” suggesting it reflects poorly on the broader cryptocurrency industry.

Ethical Concerns Over Presidential Financial Ties

The timing of the $TRUMP memecoin launch has led to ethical questions, as it occurred just days before Donald Trump’s inauguration as president. Historically, presidents-elect have made efforts to distance themselves from business ventures to avoid perceived conflicts of interest. The Trump administration’s direct ties to the cryptocurrency have drawn scrutiny from ethics watchdogs.

Jordan Libowitz of Citizens for Responsibility and Ethics in Washington commented on the situation, stating, “This is a president-elect launching businesses alongside promises to deregulate industries where he stands to profit.” Trump has also faced criticism for promoting cryptocurrency-friendly policies during his campaign, including proposals to overhaul crypto regulations and have the federal government stockpile Bitcoin.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.