Could The Ethereum Price Hit $4K After Trump’s Policy Shift?

• The Ethereum price bounced back 12% after Monday’s market crash.
• Trump administration postponed new tariffs on Mexico and Canada.
• Whale accumulation and bullish technical patterns further supported the ETH recovery.

Following a significant market crisis earlier this week, the Ethereum price has recovered significantly. The token then witnessed a 12% boost.

As geopolitical tensions lessened and investor confidence grew, the price of Ethereum returned to $2,800. Market analysts are currently discussing if the ETH price can maintain its current trend and reach $4,000 in the near future.

Trump’s Trade Policy Eases, Boosting Market Sentiment

On Monday, the Ethereum price plunged to $2,260. This followed President Donald Trump’s trade tariffs on Canada, Mexico, and China.

The move sent shockwaves across financial markets, including crypto. However, a temporary agreement between the three countries has led to a one-month delay in the tariffs, relieving investors.

The White House confirmed discussions with the Canadian and Mexican leaders. This conversation resulted in the postponement of the proposed 25% tariff on Mexican and Canadian goods.

It also stands over the 10% tariff on Chinese imports. This development sparked a broad market recovery, with the prices of Ethereum rebounding alongside those of equities and Bitcoin (BTC).

Adding to the bullish sentiment, Eric Trump too commented on the Ethereum crypto over the X platform. He stated, “In my opinion, it’s a great time to add ETH.” While the statement was met with mixed reactions, it further fueled speculation around Ethereum’s short-term trajectory.

Whales Accumulate ETH Despite Market Turbulence

Ethereum whales have been actively accumulating ETH despite the price volatility. On-chain data revealed that the Trump-linked DeFi project World Liberty Finance purchased 1,826 ETH.

They purchased Ethereum tokens, which were worth approximately $5 Million during the recent dip. The project has now accumulated 61,114 ETH, valued at $205 Million, at an average Ethereum price of $3,354.

Similarly, 1inch’s Investment Fund made a significant purchase, acquiring 7,289 ETH worth $10.44 million. Such whale activity indicated strong confidence in Ethereum’s long-term potential, even as it struggles to reclaim the $3,000 level.

Can Ethereum Price Rally to $4K?

Ethereum price action remained uncertain. However, the analysts suggested that if ETH maintains support above $2,700, a push toward $4,000 is possible.

Crypto analyst Ali Martinez pointed out that Ethereum has formed an inverse head-and-shoulders pattern. It is a historically bullish indicator. If ETH breaks past $4,000, the key target could be $7,000.

However, the Ethereum price continued to underperform Bitcoin. Following this, the ETH/BTC ratio has been sitting at its lowest level since December 2020. While Bitcoin briefly touched $102,600, ETH has yet to reclaim $3,000, signaling lingering bearish sentiment.

Despite this, Ethereum’s role in major DeFi projects suggested that a rally to $4,000 remains on the table. This could be seen if market conditions continue to improve.

Trump’s temporary tariff relief, big whale buys, and promising technical signals have sparked Ethereum price comeback. Although the price has yet to exceed $3,000, analysts increasingly believe $4,000 is within sight. This could be accurate if we believe that crucial support levels remain solid.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.