Ethereum has surged 8% in the last 24 hours after U.S. President Donald Trump decided to pause plans for imposing tariffs on Canada and Mexico. The move has sparked renewed confidence in the crypto market, which had been struggling since the tariff announcement. Adding to the buzz, Eric Trump, the president’s son, has encouraged investors to buy ETH.
What’s driving this sudden rebound? Let’s take a closer look.
On February 1, 2025, President Trump announced plans to impose tariffs on Mexico and Canada. This decision shook the markets, causing Ethereum to drop 13.1% in just two days, with its price falling from $3,301. Since then, the market has declined by a total of 18.52%.
However, after the White House signaled a possible reversal on the tariffs, Ethereum began showing signs of recovery. Initially, ETH saw a modest 0.19% gain, but in the past 24 hours, it has surged 8%, indicating growing investor optimism.
Interestingly, Eric Trump, the president’s son, in a recent post, noted that it is a great time to buy Ethereum. His initial post was highly persuasive in nature, as it contained a statement, “You can thank me later.” The statement was later removed, probably to make it appear less persuasive than the initial one.
World Liberty Financial (WLF), a DeFi project connected to the Trump family, has been making big moves in the crypto space:
Analysts believe these transactions may be linked to Earn and Borrow, WLF’s upcoming lending protocol.
A noticeable pattern has emerged between Bitcoin and Ethereum prices. Each time Bitcoin hits $100,000, Ethereum’s price has been dropping lower than before.
It was on December 5, 2024, that the Bitcoin market reached the milestone of $100K for the first time. At that time, the Ethereum market stood at around $3,900.
When BTC touched the $100K mark for the second time, ETH slipped to $3,800. When BTC touched the mark for the third time, ETH declined to $3,700; for the fourth time, to $3,400; for the fifth time, to $3,200; and for the sixth time, to $2,800.
This trend suggests Ethereum is struggling to keep up with Bitcoin during major rallies.
Ethereum’s recent 8% jump, fueled by Trump’s tariff pause and Eric Trump’s endorsement, has given the market a boost. However, its continued underperformance compared to Bitcoin raises questions about its long-term strength.
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