Ethereum Plummets 50% After Eric Trump's Tweet

Ethereum has experienced a significant downturn recently, with some investors attributing the decline to actions taken by Eric Trump. In early February, Eric Trump took to X (formerly Twitter) to express his enthusiasm for Ethereum, encouraging followers to "add $ETH" and "thank him later." However, since that post, Ethereum's price has plummeted by over 50%, leaving traders frustrated and speculating whether the tweet marked the peak of the bull run.

Initially, Eric Trump's tweet seemed to boost Ethereum's price, with a 25% jump in the days following. However, the momentum quickly reversed, leading to a substantial crash that erased previous gains. It was later revealed that Eric Trump's investment firm, World Liberty Financial, had sold $175 million worth of Ethereum shortly after his tweet. This revelation sparked criticism from figures like Peter Schiff and tech investor Chris Bakke, who questioned the sincerity of the initial endorsement. The situation began to feel more like a coordinated move rather than a genuine expression of optimism.

The decline in Ethereum's price is not solely attributable to Eric Trump's actions. Hours before his tweet, the administration of his father had announced new tariff threats, causing global market turmoil and spooking investors. This, combined with lingering distrust from previous Trump-linked token failures, exacerbated the situation. As a result, Ethereum found itself caught in the crossfire of political tensions and market fears.

On April 8, 2025, the Ethereum price chart showed a steep downtrend, trading within a descending channel. The price bottomed near $1,460 before beginning to form a short-term ascending channel. The bullish reversal was supported by oversold conditions on the RSI readings, indicating seller exhaustion. As the price broke out of its descending formation, momentum strengthened, and it briefly moved above $1,600, entering a resistance zone between $1,600 and $1,625. However, the upward momentum was not sustained, and the price slipped back into a sideways range.

Multiple golden crosses on the MACD indicator coincided with Ethereum's breakout from the downtrend, confirming bullish momentum. However, several death crosses followed, indicating fading momentum during consolidation. The RSI levels during this period were near mild overbought, supporting resistance to the upside near $1,620. Ethereum's current structure shows it bouncing above the $1,525 area, with broader support between $1,450 and $1,475. The overall compression between major resistance and support zones suggests a potential breakout in either direction, depending on volume and market sentiment.

Ethereum is currently at a critical juncture. Following the volatile reaction to Eric Trump's tweet and broader macroeconomic stress, the recent crash has left the price trapped between strong resistance near $1,625 and solid support around $1,475. The short-term bounce shows signs of life, but repeated rejections at higher levels and fading MACD momentum keep bulls cautious. If buying volume does not materialize, Ethereum risks sliding back toward the $1,475 support. Conversely, a clean break above $1,625 could shift sentiment and reignite bullish momentum. Traders should closely monitor these levels for potential price swings as Ethereum navigates ongoing political noise and market uncertainty.