ETH Price Crashes 50% After Eric Trump’s $175M Dump: Coincidence or Market Manipulation?

Ethereum has been taking a beating lately, and some investors are pointing fingers at a surprising source: Eric Trump. Back in early February, he jumped on X (formerly Twitter) to share his sudden love for ETH, confidently telling people to “add $ETH” and “thank him later.” Fast forward to now, and Ethereum has dropped over 50% since that tweet, leaving traders frustrated and wondering if that post marked the top of the bull run.

Why the Eric Trump Post Rubbed the Market the Wrong Way

At first, Eric’s post gave ETH a quick jolt, and prices jumped 25% in the days after. But it didn’t take long for the glow to fade. The ETH crash soon followed, wiping out gains and reversing the market’s momentum. News broke that his investment firm, World Liberty Financial, had offloaded $175 million in ETH not long after his tweet. That didn’t sit well with the crypto crowd. Peter Schiff wasted no time mocking the move, and tech investor Chris Bakke threw salt in the wound with a brutal “you’d be broke and divorced” joke. The whole thing started to feel less like optimism and more like a setup.

Bigger Issues: Tariff Tensions and Trust Trouble

Of course, Ethereum’s slump isn’t just about one tweet. Hours before Eric hit send, his father’s administration stirred up global markets with fresh tariff threats, spooking investors and sending high-risk assets like crypto tumbling. That, mixed with lingering distrust from past Trump-linked token flops, made things worse. Now, ETH is stuck in the crosshairs of politics and market fear. So, where does Ethereum go from here? Let’s dive into the charts and see what the technicals are telling us.

ETH Price Action Analysis of April 8, 2025

The ETH Price, as seen on a 5-minute chart, indicated it began in a steep downtrend price that traded in a clearly defined descending channel. The price bottomed near $1,460 before turning and beginning to construct a short-term ascending channel. The bullish reversal was accompanied by several oversold conditions on the RSI readings during the downtrend, pointing to seller exhaustion. 

As the ETH price broke out of its descending formation, momentum began to strengthen, and the price returned to trade above the level of $1,600, briefly moving into the resistance zone of $1,600 to $1,625. However, the move was not overpowered to the upside and rejected near the top of the range, and the ETH price then slipped back into a sideways price range.

Chart 1, Analyzed by Alokkp0608, published on April 8th, 2025

Multiple golden crosses on the MACD indicator coincided with ETH’s breakout from the downtrend, confirming bullish momentum. Several death crosses occurred after, indicating momentum had faded during consolidation. The RSI levels during this range-bound period were also near mild overbought, supporting resistance to the upside near $1,620. The current structure shows ETH bouncing above the $1,525 area, which has been short-term support, while the broader support zone is between $1,450 and $1,475. The overall compression with major resistance and support zones is enough to see a breakout in either direction, contingent on volume and market sentiment.

Conclusion: Ethereum Teeters Between Resistance and Support

Ethereum is at a critical crossroads. After a volatile reaction to Eric Trump’s tweet and broader macroeconomic stress, the recent ETH crash has left the price trapped between strong resistance near $1,625 and a solid support zone around $1,475. The short-term bounce shows signs of life, but repeated rejections at higher levels and fading MACD momentum keep bulls on edge. If buying volume fails to materialize, ETH risks sliding back toward the $1,475 support. However, a clean break above $1,625 could shift the sentiment and reignite bullish momentum. Traders should closely monitor these levels for potential price swings as Ethereum reacts to ongoing political noise and market uncertainty.