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The cryptocurrency market is undergoing significant volatility, with Ethereum ($ETH) acting as a key indicator of how low it could potentially drop.
The world’s second most popular cryptocurrency was on track to possibly reach highs of $5,500 this year, but recent price fluctuations indicate that the path to that target may be becoming increasingly complex.
After a sharp 37% drop in response to Trump’s aggressive tariff policies, $ETH made a notable recovery, climbing 35% following Eric Trump’s endorsement of the asset. With two major price movements occurring within just four days, Ethereum’s performance suggests turbulent conditions ahead.
In my opinion, it’s an opportune moment to acquire $ETH.
— Eric Trump (@EricTrump) February 3, 2025
Many are looking toward 2025 with optimism for a potential bull market. This is primarily due to Trump’s pro-crypto policies, which have included the signing of an Executive Order to establish a task force aimed at drafting a comprehensive regulatory framework for the industry and evaluating the feasibility of a strategic US cryptocurrency reserve.
Additionally, it is believed that Bitcoin’s supply halving last year, along with the strong possibility of the US SEC approving spot altcoin ETFs, could propel cryptocurrency prices upward.
However, Ethereum’s current performance raises doubts about whether this will indeed occur.
ETH Price Analysis: A High-Stakes Market
At its current price of $2,749, Ethereum remains approximately 32% below its peak of $4,016 reached during the Trump-induced surge.
In the past week, $ETH fell below $2,800—three times the percentage drop of Bitcoin. The asset’s relative strength index indicated oversold conditions three times, plummeting steeply down to 10 on two occasions in the last week—a rare event for any cryptocurrency.
What triggered this? Trump’s stringent economic policies, widely viewed as a trade conflict on multiple fronts, with tariffs imposed against Canada, Mexico, China, and the European Union, led to the largest 24-hour crypto liquidation on record, erasing $10 billion in a single move.
#Trump, tariffs, turbulence. US imposes new import duties on #Canada, #Mexico, and #China. It will significantly impact global supply chains and markets. Time for emerging markets including India, to prepare for and be resilient to, outflow shocks from global investors, says… pic.twitter.com/qL8Z1YHd6n
— CNBC-TV18 (@CNBCTV18Live) February 2, 2025
Nevertheless, the situation is more complex than it appears. Ethereum-based exchange-traded funds (ETFs) have seen four consecutive days of inflows. An impressive $307.8 million flowed in within a single day—the highest so far this year—led by BlackRock’s ETHA, which alone attracted $276.2 million.
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This institutional support is crucial for keeping $ETH above the $2,745 support level. A breach of this area could put 4.26 million $ETH at risk, potentially triggering an $11 billion sell-off—a significant risk factor to monitor.
As Ethereum’s $ETH Declines, Smart-Money Investors Move $9.2 Million into Best Wallet
While Ethereum may be fluctuating dramatically, one highly regarded token could very well be among the top-performing assets of 2025 by year’s end.
$BEST is the native utility token of Best Wallet, a next-generation cryptocurrency wallet that could capture significant market share from Trust Wallet and MetaMask.
More of a versatile tool than merely a secure storage solution, Best Wallet provides users with various useful features to enhance their trading and investment strategies.
One of its most talked-about features is the “Upcoming Tokens” tool, which curates the most promising crypto projects, enabling Best Wallet users to act before others in the market.
It also aggregates the diverse yield farming opportunities in crypto to show users how best to optimize their portfolios.
Best Wallet currently supports over 1,000 cryptocurrencies.
The $BEST token is currently priced at $0.023875, but this will increase slightly as the presale progresses through its rounds.
Of course, security is a top priority for a wallet. Best Wallet employs Fireblocks’ MPC-CMP encryption to safeguard user assets.
Having raised over $9.2 million, Best Wallet is a strong contender in the software wallet market and may even outperform Ethereum’s $ETH this year.
Follow Best Wallet on X and Telegram.
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