A crypto analyst says deep-pocketed investors are snapping up the top layer-1 platform Ethereum (ETH) amid the marketwide digital asset correction.

Trader Ali Martinez tells his 132,900 followers on the social media platform X that whales gobbled up more than $815.514 million worth of ETH in less than a week.

“Whales have bought more than 420,000 Ethereum ETH in [five days]!”

Martinez is also keeping a close watch on Ethereum’s In/Out of the Money Around Price (IOMAP) metric – which classifies crypto addresses as either profiting, breaking even, or losing money – to determine support and resistance levels for ETH.

According to Martinez, ETH is currently trading in a narrow range between stiff support and resistance zones.

“Ethereum ETH key levels to watch! On-chain data reveals $1,870 as the strongest support and $2,050 as its toughest resistance!”

At time of writing, ETH is trading for $1,941.

Turning to Bitcoin (BTC), the trader believes that the crypto king is poised to witness tactical rallies after breaching the horizontal resistance of an ascending triangle pattern.

“Bitcoin BTC is breaking out! The target is $90,000 as long as the $84,000 support holds.”

An ascending triangle pattern may be considered a bullish reversal structure if the asset soars above its horizontal resistance.

At time of writing, Bitcoin is trading for $84,288.

Turning to Ethereum rival Cardano, the analyst predicts rallies for ADA if the altcoin takes out the diagonal resistance of a triangle pattern at around $0.75.

“Cardano ADA is about to break free! Busting out of this triangle will trigger a 15% price move.”

A triangle is typically viewed as a consolidation pattern as it signals a potential breakout in either direction. The asset is considered bullish if the price moves above the diagonal resistance and bearish if it tumbles below the diagonal trend line.

At time of writing, ADA is worth $0.744.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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As President Donald Trump stakes his claim on the future of cryptocurrency in America, investors and industry insiders are divided on whether his administration truly marks a turning point for digital assets.

Kevin O’Leary, chairman of O’Leary Ventures and a longtime cryptocurrency advocate, recently lauded Trump’s stance on digital assets, arguing that this administration is ushering in a “new phase” for the industry.

Speaking on “My View with Lara Trump,” O’Leary asserted that the so-called “cowboy era of crypto” — marked by high-profile fraud cases and regulatory uncertainty — was over.

Recall that O’Leary was indeed affected by perhaps the biggest crypto fraud case of all — FTX. As an investor and spokesperson for the exchange, O’Leary lost a significant amount of money when Sam Bankman-Fried’s startup went bankrupt in late 2022.

“All the crypto cowboys are in jail or out of business. So now we’re in a new phase. There’s a new tone with the government. Trump has put it forward,” O’Leary said.

But rug pulls and devastating hacks are still commonplace.

Meanwhile, crypto “whales” and influencers are making a killing by pumping up coins with fake “insider knowledge,” inflating prices before cashing out, and leaving everyday investors holding the bag. It’s the Wild West out there, and the scammers are riding high.

O’Leary’s optimism comes as Trump embarks on one new crypto initiative after another.

After speaking at the Bitcoin 2024 Conference in Nashville, the then-GOP nominee launched World Liberty Financial. Two days before his inauguration, he unveiled the Official Trump (TRUMP) meme coin. And all of those SEC-led investigations into cryptocurrency-related companies (i.e., Binance and Coinbase)? They’re disappearing.

Earlier this month, Trump signed an executive order establishing a Strategic Bitcoin Reserve. The move, which designated certain digital assets like XRP, SOL, and ADA as part of a government-backed strategic reserve, has been touted by Trump and his allies as a major step toward integrating crypto into traditional finance.

While O’Leary hails these developments as proof of a regulatory turning point, not everyone in the crypto world is convinced.

‘This ain’t it’

Critics argue that Trump’s newfound embrace of digital assets hurts the industry’s credibility and paves the way for crony capitalism.

“Crypto is at an existential moment,” Zack Guzmán, a crypto journalist and founder of the Web3 media company Trustless Media, warned on Jan. 18. “I understand the desire to make quick money; I understand the excitement of thinking short-term; I understand stand [sic] why Trump, a man who has grifted in every way to make money for himself would so easily win the industry. But this ain’t it.”

Only politically favored crypto firms will thrive under government protection, Guzmán said.

The same day Trump decided to launch a memecoin, which skyrocketed 10,000% in value, crypto elitists dressed up in tuxedos and gowns, ready to hobnob at a gala in Washington, D.C. They were completely unaware that Official Trump would soon become a digital dumpster fire (it’s currently down over 84% from its peak).

“I’m not saying Trump just used everyone in crypto by throwing a black tie event in DC while simultaneously launching a memecoin without them, but that’s exactly what he did,” Guzmán wrote on Jan. 18. “This industry is his industry now, whether they are aware of it or not. Frankly, that’s extremely sad.”

‘Stupid and embarrassing’

After Trump launched Official Trump, Balaji Srinivasan, a cryptocurrency investor, called meme coins a “zero sum game.”

“There is no wealth creation,” he tweeted the day before Trump’s inauguration. “Every buy order is simply matched by a sell order. And after an initial spike, the price eventually crashes and the last buyers lose everything.”

Crypto entrepreneur Erik Voorhees wrote on X:

Trumpcoin is stupid and embarrassing. Trumpcoin is a signal of sea change in US fintech policy towards much more permissive innovation. Both are true.

SkyBridge founder and former White House Communications Director Anthony Scaramucci called it “Idi Amin-level corruption”, referring to the military officer whose Ugandan rule in the 1970s was defined by corruption.

And that Bitcoin reserve — the one David Sacks, Trump’s crypto czar, says will be filled with seized digital assets — seems far-fetched, too. Crypto analyst Dessislava Aubert told the Agence France-Presse that the U.S. government must return seized Bitcoin to all victims identified as suffering from a hack.

Despite the skepticism, O’Leary remains steadfast in his belief that Trump’s policies will legitimize crypto in ways no previous administration has.

“The big news is that this will be the first administration that’s going to say this sector belongs in America. The development should be here. The technology should be mastered here. We should lead the world in it,” O’Leary added.

Whether Trump’s promises translate into lasting regulatory clarity—or are merely political grandstanding—remains an open question. For now, the crypto world watches closely, caught between hope and deep-seated doubt.

The financial services giant Cantor Fitzgerald is predicting the stock market will see rallies in the next one to two weeks.

In a new interview on CNBC Television, Eric Johnston, a macro strategist at Cantor Fitzgerald, says that he expects a short-term bounce in the stock market during the next couple of weeks even though he says the equity environment looks “fairly poor.”

“You have an economy that is clearly slowing. Uncertainty is quite high…

But within that view, we think we’re going to get a tactical rally here, probably somewhere in the range of 3% to 5% in the next couple of weeks. We think things line up very well from a technical perspective.”

Johnston uses many technical indicators, such as the Relative Strength Index (RSI) – a momentum indicator used to indicate overbought or oversold levels – to support his stance that a tactical rally is in sight.

“The RSI has gone below 32. We’ve backtested that [and it] backtests very consistent, very strong. The VIX curve (volatility index) has gone inverted. That is showing fear. That is also backtested very well. Seasonality is turning. Systematic funds have likely already sold what they needed to sell.

And hedge funds have also brought down their net exposure. So you add that to the Fed next week, which is where we think they’re going to be dovish. And we think this sets up for a nice rally over the course of the next one to two weeks into month-end.”

Recently, it was reported that the US stock market lost a staggering $5 trillion in value during the last three weeks.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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