Key Points
- Ethereum’s price has surged by 12%, surpassing $2,800, following a severe crypto market correction.
- The rally was driven by easing Trump trade war tensions, Ethereum whale accumulation, and other factors.
After a significant crypto market correction, the price of Ethereum (ETH) has rebounded strongly, increasing by 12% and exceeding $2,800.
The surge is attributed to several factors including the relaxation of the Trump trade war, the first press conference by America’s digital assets leader David Sacks, and Ethereum whale accumulation.
Crypto Market Rally Amid Eased Trade War Measures
On Tuesday, the broader crypto market, including Bitcoin (BTC), Ethereum, and other altcoins, recovered following a severe crash on Monday.
This recovery was sparked by Donald Trump’s decision to relax the tariff war after reaching a temporary agreement with Canada and Mexico.
The United States, Mexico, and Canada consented to a one-month delay on new tariffs initially announced by President Donald Trump.
These proposed tariffs included a 25% levy on Mexican and Canadian goods and a 10% tariff on Chinese imports.
The postponement was confirmed after discussions between Trump and the leaders of Mexico and Canada.
This development triggered a robust recovery in the global equity and crypto market.
Ethereum’s price, along with other altcoins, has rebounded strongly, moving above the crucial support level once more.
Ethereum Whale Accumulation
As the Ethereum price plummeted to $2,500 on Monday, Ethereum whales seized the opportunity to buy the market dips.
Donald Trump’s DeFi project World Liberty Financial spent another 5 million USDC stablecoins to purchase an additional 1,826 ETH at $2,738.
Since January 19, the project has spent around $150 million acquiring a total of 45,405 ETH coins.
However, data from Spot On Chain shows that it is currently facing a nearly 25% drop in its ETH investments.
Despite the current market turbulence, the DeFi project continues to acquire more ETH.
Furthermore, the 1inch’s Investment Fund has made significant moves, purchasing 7,289 ETH, worth a massive $10.44M in investment.
Crypto analyst Ali Martinez noted that Ethereum’s price needs to sustain the $2,700 level to keep the bullish structure of the inverse head and shoulder pattern intact.
Once ETH crosses the $4,000 resistance, it can further rally to $7,000 and beyond.
Potential Inclusion of Ethereum in Trump’s Sovereign Wealth Fund
On Tuesday, US President Donald Trump signed an executive order for the creation of a Sovereign Wealth Fund.
White House Press Secretary Karoline Leavitt announced the decision, emphasizing the fund’s anticipated significance in national financial planning.
While specific details about the fund’s purpose and structure remain undisclosed, it is expected to manage a diverse portfolio of assets.
Financial analysts speculate that alternative investments, such as Bitcoin and Ethereum, could be included to enhance diversification.
David Sacks to Hold Press Conference
AI and crypto leader David Sacks will be holding the first conference on Tuesday, along with other Republican lawmakers, discussing America’s leadership in the crypto space.
The announcement revealed that Sacks will present the White House’s strategic plan for digital assets and the broader cryptocurrency market, focusing on critical areas like regulatory policies, innovation incentives, and national security priorities.
