Ethereum Price Analysis: ETH Hits $2,913 Before Dropping Back to $2,806
Ethereum Price Analysis – Ether (ETH) saw a significant rebound, climbing back above $2,900 after US President Donald Trump announced a temporary halt on proposed tariffs aimed at Canada and Mexico. This came after a sharp decline in the cryptocurrency market on February 2-3, triggered by fears surrounding Trump’s tariff plans. Ether, which had plummeted by 16% to a local low of $2,368 in just one hour, quickly recovered, reaching as high as $2,913.
Eric Trump Encourages ETH Investment on X
The recovery was further fueled by Eric Trump, son of the president, who encouraged his 5.4 million followers on X (formerly Twitter) to add ETH to their portfolios. In a post on February 3, Eric wrote, “In my opinion, it’s a great time to add $ETH. You can thank me later.” Although the post was later edited to remove the last five words, the tweet added to the momentum, pushing ETH to its brief peak of $2,913 before it corrected back to $2,806.
Crypto Moves by World Liberty Financial
Meanwhile, the Trump family’s World Liberty Financial (WLF) crypto platform made notable moves in the crypto space. On February 3, WLF transferred $307.41 million worth of assets to Coinbase‘s custody platform. Additionally, it unstaked nearly 20,000 Lido Staked Ether (stETH) and spent $5 million to purchase 1,826 ETH at a price of $2,738. This move was interpreted by blockchain analytics firm Spot On Chain as part of WLF’s strategy to support its soon-to-be-launched “Earn and Borrow” lending protocol.
Ethereum Foundation Expands Support for DeFi Developers
On the organizational front, the Ethereum Foundation has recently made several changes aimed at bolstering support for developers within Ethereum’s decentralized finance (DeFi) ecosystem. The foundation set aside 50,000 ETH for staking rewards, which could potentially support most of its internal budget. This decision is seen as a move to reduce selling pressure and help stabilize the Ethereum network’s price performance during the ongoing bull cycle.
Market Correction and Future Outlook
As of this morning, however, the ETH price has experienced a decline, dropping from $2,900 to around $2,650. Despite the recent recovery, the broader market remains volatile, with fluctuations likely continuing through the day. While Ethereum’s short-term outlook may face challenges, institutional involvement and strategic movements within the ecosystem indicate a growing interest in the cryptocurrency space.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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