Ethereum is experiencing a significant downturn, having plummeted 53% since February, and many are attributing this decline to a controversial tweet made by Eric Trump earlier this year.

The Fallout from Eric Trump’s Tweet

Eric Trump’s ill-conceived recommendation to ‘buy ETH’ has backfired spectacularly. Traders and skeptics, including notable figures like Peter Schiff, have criticized his advice amid the market turmoil.

Ethereum’s Recent Decline

The cryptocurrency has seen a dramatic 13.8% drop this past week, falling below $1,500 and exacerbating fears of a wider altcoin collapse. Initially, Trump’s endorsement in February gave Ethereum a short-lived boost, but the market conditions soon soured.

JUST IN: The stock market shows signs of recovery as more than 50 nations, including Japan and the EU, reach out to negotiate trade agreements with the USA.

— Libs of TikTok (@libsoftiktok) April 7, 2025

On February 3, Eric Trump tweeted his support for Ethereum: “It’s great to add $ETH. You can thank me later.” This statement might have sparked a transient 25% increase in ETH value, which quickly evaporated due to growing economic anxieties.

Critics have lambasted his advice as being out of touch, especially after the World Liberty Financial firm, overseen by Eric Trump, liquidated $175 million worth of ETH soon after his tweet.

Tech investor Chris Bakke summarized the result starkly: “If you invested $100,000 in ETH at the time of this post, you’d have $46,782 and be divorced by now.”

External Factors Impacting Ethereum

The broader issues surrounding Trump’s administration’s tariff threats should also be considered. Just hours prior to Eric Trump’s tweet, these policies had already incited apprehension in the markets. The volatility of high-risk assets like cryptocurrency during such economic uncertainty is particularly pronounced.

Moreover, there is a lingering distrust in products affiliated with the Trump name, stemming from past market anomalies associated with certain tokens linked to the family.

Key Takeaways

1. Ethereum has lost over 53% since February, with the controversial Trump tweet as a main factor.
2. The price of ETH has traversed down to $1,550, representing a sustained bearish trend.
3. Eric Trump’s bullish stance on Ethereum serves as a cautionary tale regarding high-pressure investment hype.