We have discovered already at PandorraResearch Team a month ago or so in earlier published idea, that Donald Trump's recent policies and statements have generated significant negative sentiment towards Ethereum and the broader cryptocurrency market. As he resumes the presidency, his administration's approach to cryptocurrencies is expected to be more regulatory and cautious, which could impact Ethereum investors.
Donald Trump's actions and announcements have had a negative influence on Ethereum prices through several mechanisms.
Technical challenge.
The main technical graph for Ethereum
ETHUSD indicates on further Bearish trend in development (since mid-December 2024) with acceleration occurred a day before Mr. Trump entered the White House.
Previous key supports were considered as 100-week SMA (near $2550 per Ethereum), $2200 flat multi bottom and 5-years SMA (near $2100 per Ethereum), so all of them are broken to this time. That is why we believe (in this case of multi breakthrough), it could lead the Ethereum price much lower, as it described on the chart.
Conclusion.
Overall, Trump's influence on Ethereum prices is characterized by disappointment over unfulfilled expectations, market volatility driven by his rhetoric, and negative impacts from trade tensions and regulatory uncertainty.
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Best 'Trump & Dump' wishes,
PandorraResearch Team 😎
Donald Trump's actions and announcements have had a negative influence on Ethereum prices through several mechanisms.
- Disappointment Over Strategic Bitcoin Reserve Order.
Trump's executive order to establish a Strategic Bitcoin Reserve was initially seen as a positive move, but it did not lead to immediate government purchases of cryptocurrencies. Instead, it focused on creating a budget-neutral strategy, which meant no taxpayer funds would be used for spot purchases in the short term. This lack of immediate action led to disappointment and selling in the market, affecting Ethereum's price. - "Pump & Dump" Effect.
Trump's rhetoric and announcements often create a "Pump & Dump" effect in the cryptocurrency market. This phenomenon involves a brief surge in prices followed by a sharp decline as investors realize there is no concrete action behind the rhetoric. Ethereum, along with other cryptocurrencies, experienced this volatility after Trump's statements about including Ethereum in a crypto reserve. - Trade Tensions and Tariffs.
Trump's tariff announcements have exacerbated global trade tensions, which negatively impact the broader financial markets, including cryptocurrencies. Ethereum has been particularly sensitive to these developments, experiencing significant price drops in response to tariff threats against major trading partners like Canada, Mexico, and China. - Market Volatility and Uncertainty.
Trump's unpredictable policies and statements contribute to market volatility and uncertainty. This environment can deter investors and lead to price fluctuations in Ethereum and other cryptocurrencies. The lack of clear regulatory guidance under his administration adds to the uncertainty, affecting investor confidence and Ethereum's price stability.
Technical challenge.
The main technical graph for Ethereum
ETHUSD indicates on further Bearish trend in development (since mid-December 2024) with acceleration occurred a day before Mr. Trump entered the White House.Previous key supports were considered as 100-week SMA (near $2550 per Ethereum), $2200 flat multi bottom and 5-years SMA (near $2100 per Ethereum), so all of them are broken to this time. That is why we believe (in this case of multi breakthrough), it could lead the Ethereum price much lower, as it described on the chart.
Conclusion.
Overall, Trump's influence on Ethereum prices is characterized by disappointment over unfulfilled expectations, market volatility driven by his rhetoric, and negative impacts from trade tensions and regulatory uncertainty.
--
Best 'Trump & Dump' wishes,
PandorraResearch Team 😎
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.