Key Takeaways
- ETH has soared over 10% in the last 24 hours following Trump’s postponing his tariff proposal against Mexico.
- Eric Trump’s surprise endorsement of the prominent cryptocurrency has also helped boost the investment sentiment surrounding ETH.
- Per market analysts, the coin could hit the $5K mark if it maintains a slow but steady rally in the market.
ETH, one of the top cryptocurrencies of the crypto market has surged over 16% in the past hours. Ethereum or Ether is the native token powering the Ethereum blockchain. It is a decentralized computing platform allowing developers to create various dApps and smart contracts. This article will explore the coin’s sudden surge in the market, the factors that led to its surge, and how it will fare in the potential future.
Trump’s Tariff Halt & ETF Spike
Donald Trump signed an executive order on Saturday, 1st February 2025 against goods imported from Canada, Mexico, and China. Per the order, the countries need to pay 25% tariffs on all the goods imported from Mexico and Canada, except for energy products. This caused the entire crypto market to collapse as inventors fret over the economic impact of these tariffs and has also somewhat resulted in a fierce international dispute between the countries.
However, after meeting with Mexican President Claudia Sheinbaum, they came to an agreement to pause the tariff for 30 days time as long as Mexico prevents illegal migrants and drugs from crossing into the US Territory. It has resulted in Ethereum, one of the most prominent coins in the market, making a tremendous comeback. This rebound fueled by Eric Trump’s endorsement through his X account saw the coin soaring to a high of $2900 in a matter of hours.
ETH Tops $2.9K Amid Eric Trump’s Endorsement
Eric Trump, who is one of the key players in the World Financial Liberty platform, a Trump-backed DeFi (Decentralized Finance) platform, has made a key remark about ETH through his X account. His post said, “In my opinion, it’s a great time to add ETH. You can thank me later”. He later then edited this to omit the last 5 words.
Around the time he posted, the ETH was trading at $2,752.9 and on an uptrend in the market. From there, the coin continued to climb until it reached a high of $2,919.48, after 40 minutes into his post on X. His remarks on the ETH market performance, triggered by Trump’s proposal had improved the market sentiment and investor confidence surrounding the prominent crypto.
ETH Current Market Performance & Future Outlook
In the last 24 hours, ETH has risen by almost 10% and is currently trading at $2,709.8. The coin is ranked #2 on its market capitalization, estimated to be $326.6 billion with a circulating supply of 120.52 million tokens. The coin is currently trying to recover from the dip due to the market crash registered following the tariff imposed by Trump.
The coin is currently maintaining a support level of $2,500 but is encountering steady resistance whenever it reaches the $2,900 mark. Various market analysts and technical indicators are predicting that the coin could very well rise over 80% and reach a potential high of $5000 if it breaks out this resistance level and maintains a steady rally.
However, there is a downside to this. That is, if the cousin fails to maintain its support level in the coming days, it could spiral down in the market and could go as low as $2,200. But the probability of this happening is extremely low. Even with these potential speculations, only time will tell how the coin will fare in the market in these highly volatile times.
