Ethereum Surges 70% to $3,020.86 as Trump's Endorsement Boosts Crypto Markets

Ethereum has surged past the $3,000 mark for the first time in 2025, currently trading at $3,020.86. This significant milestone represents a substantial recovery from its April low of $1,794. The breakthrough comes as Bitcoin reaches new all-time highs above $117,000, creating favorable conditions for Ethereum's own parabolic advance.

The journey to this milestone has been tumultuous, with Ethereum declining from January’s opening near $3,298 to its cycle low in April. Historical price data shows a volatile path through 2025, with February closing around $2,900, March at $2,650, and a dramatic collapse to $1,794 in April before the recovery began.

President Trump’s recent declaration on Truth Social that crypto is “through the roof” has triggered significant buying pressure across digital asset markets. The timing of Trump’s endorsement, combined with unprecedented dollar weakness, has created ideal conditions for risk asset appreciation. Institutional investors interpret this as a signal of continued monetary accommodation.

The Ethereum breakout coincides with Bitcoin’s explosive rally past $117,000. Over $243 million in Ethereum liquidations alone contributed to the market-wide short squeeze, pushing both cryptocurrencies to new highs. Trump’s proposed 300-basis-point interest rate cut has created massive tailwinds for alternative assets, as the dollar experiences its worst performance since 1973.

The Dollar Index has fallen 10.1% year-to-date, trading 6.5 points below its 200-day moving average, the largest margin in 21 years. The emergency-level monetary intervention into a growing economy, with an annual growth rate of 3.8%, would push inflation above 5% while driving the dollar down an additional 10%. Historical precedent warns against such aggressive policy, as the Federal Reserve has never implemented cuts exceeding 75 basis points outside recession periods.

Kobeissi Letter analysis projects dramatic asset price inflation following potential rate cuts, with gold targeting $5,000 per ounce and continued capital flight into cryptocurrencies. Bitcoin’s correlation with dollar weakness positions digital assets as primary beneficiaries of monetary debasement and currency depreciation. Corporate treasury adoption accelerates as companies seek protection from currency debasement, with over $1 billion allocated to crypto treasuries this week alone.

The institutional revolution combines with retail FOMO to create sustained buying pressure. Bitcoin ETFs have purchased $15 billion worth of BTC since mid-April, with steady institutional demand supporting higher trading ranges. Trump’s crypto-friendly policies include establishing a national crypto reserve and appointing pro-crypto officials to key regulatory positions.

Technical analysis confirms a bullish breakout pattern for Ethereum. The asset spent considerable time forming lower highs and lows, ranging from $4,000 to $1,500, before breaking decisively above the Ichimoku cloud resistance. The Ichimoku cloud breakout represents a shift from bearish to bullish momentum, with price definitively reclaiming the psychological $3,000 level. The technical setup establishes $2,950-$3,050 as key support after the breakout, with ascending projections targeting $3,600, $4,200, and $4,800.

According to MerlijnTheTrader, the weekly perspective provides even stronger bullish confirmation, showing a clean reclamation of the $2,200 resistance with minimal pullbacks. The price action indicates strong buying pressure across timeframes, with projections extending toward $10,000 based on historical bull market patterns. The broader context of Bitcoin establishing new highs above $117,000 provides additional momentum for Ethereum, which historically outperforms Bitcoin in percentage terms during parabolic phases.

Previous resistance levels at $4,000 represent the next major target given historical significance as cycle highs. Key risk factors include failing to hold above the $2,800-$2,900 support level, which could indicate false breakout scenarios and potential retests of the $2,200 levels. However, current momentum and institutional participation suggest a continued upward trajectory toward $4,000 initially. Based on technical indicators and market structure, Ethereum is positioned for continued appreciation toward $3,600-$4,200 in the near term, with the potential for an extension to $4,000+ if Bitcoin’s momentum sustains.