Ethereum experienced a substantial increase in price, moving from $2,300 to $2,900 within a single day. This occurred following a sharp downturn on February 3 and subsequent price recovery. Key political and financial events influenced investor sentiment.
Political Factors Affecting Ethereum's Price
The initial rebound to around $2,700 came after U.S. President Donald Trump announced a temporary pause on planned trade tariffs affecting Canada and Mexico. Shortly after, Eric Trump's endorsement of Ethereum on the platform X acted as a catalyst, further accelerating the price increase. This highlighted the sensitivity of crypto markets to political events and public endorsements from high-profile figures.
World Liberty Financial's Liquidation and Its Impact
Ethereum's market recovery followed a major sell-off by World Liberty Financial, a decentralized finance (DeFi) project reportedly linked to President Donald Trump. On February 3, the project liquidated more than 90% of its $363 million crypto holdings, including substantial amounts of ETH, WBTC, AAVE, ENA, and LINK. The assets were transferred to Coinbase Prime and other exchange wallets, often routed through intermediary addresses. The liquidation coincided with increased ETH deposits from newly created or previously inactive wallets.
Current Price Trends of Ethereum
Currently, Ethereum is trading around $2,720, with an intraday high of approximately $2,900 and a low near $2,500. The price surge reflects increased trading activity amid broader market developments and investor reactions to recent political and financial shifts.
Ethereum shows significant market activity, underscoring its responsive nature to both political and financial events.
