Surprise Ethereum Support from Trump: What It Means for ETH’s Future?
After Trump declared that Ethereum would be included in the official Crypto Strategic Reserve, the price of the cryptocurrency jumped 15% on Sunday, March 2, from $2,200 to $2,550 in a single, hectic hour. The markets’ reactions to Trump’s formal ratification of the highly anticipated Crypto Strategic Reserve over the weekend brought Ethereum’s price movement under close examination.
Interestingly, Trump had originally left Ethereum off of the list of altcoins that should be part of the strategic reserve asset bucket. Concerns that ETH was left out because of recent network update disputes and leadership changes were raised by the announcement, which was made at noon in the U.S. trading session and only included SOL, ADA, and XRP.
And, obviously, BTC and ETH, as other valuable currencies, will be at the heart of the Reserve. I also love Bitcoin and Ethereum!
Trump
However, almost two hours after the first announcement, Trump published a second post stating that Bitcoin and Ethereum were also on the list of assets that the US Treasury would purchase. After this explanation, the price of ETH immediately began to increase. The price rose 15% in just one hour after the second post, rising from $2,200 to regain ground above $2,550.
Trump’s ETH Inclusion Sparks Record Leverage Moves: Why Traders Are Betting Big on Ethereum?
The derivatives market’s movements suggest that on Sunday, a few strategic traders used a lot of leverage. They wanted to ensure larger earnings if the trading week got off to a good start after Trump added ETH to the Crypto Strategic Reserve. Bulls dominated on Sunday, according to data from the Coinglass Liquidation Map, which monitors the real-time leverage balance on active long futures contracts vs. shorts. This suggests that when markets reopen for the week, most traders are placing bets on additional gains.
According to the ETH liquidation map chart above, short leverage has decreased to just $333 million, while bulls have mounted a total of $1.14 billion as of Sunday’s publication time. This indicates that the ETH market is now dominated by bulls, with long leverage outpacing shorts by about 70%. Since the US government is supporting the current ETH price rally, it seems short traders are choosing to exit their positions early rather than risk larger losses, which is consistent with the news events that are now trending.
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