In a development that underscores the often uncanny timing of celebrity endorsements and their correlation with market reversals, Ethereum has plummeted by 51% since Eric Trump publicly stated it was a “great time” to invest in the asset. The observation highlighted by well-followed market analyst Merlijn The Trader on X is now gaining traction as a textbook example of what seasoned traders refer to as a “top signal.”
Ethereum has dumped 51% since @EricTrump said it was a “great time” to buy.
The top signal was presidential. pic.twitter.com/oWGXODUNcc
— Merlijn The Trader (@MerlijnTrader) April 7, 2025
The Presidential Endorsement That Marked the Peak
Eric Trump’s enthusiastic commentary on Ethereum came during a period of elevated optimism across the cryptocurrency sector. His statement, though not anchored in any clear technical or macroeconomic analysis, appeared to reflect a broader sentiment-driven endorsement of digital assets. For many retail investors, hearing such bullishness from a public figure associated with political influence and wealth may have felt like a green light to enter or double down on positions.
However, as Merlijn The Trader has pointed out, the timing could not have been worse.
Since Trump’s proclamation, Ethereum has steadily declined, shedding more than half its market value. The 51% drop is not only significant in terms of price action but also emblematic of how emotionally driven market entries — particularly those triggered by non-specialist endorsements — can coincide with market tops rather than sustainable entry points.
The Psychology of Top Signals
In financial circles, especially among contrarian and technical analysts, public endorsements by high-profile individuals — particularly those not deeply embedded in financial markets — are often viewed as lagging indicators. These “top signals” typically emerge after a strong rally, when the media frenzy and public excitement have reached a peak.
By the time public figures begin touting an asset, seasoned investors have often already started to exit. This psychological cycle of euphoria and distribution is well-documented in market theory and has played out repeatedly in the history of crypto assets, from the 2017 ICO boom to more recent meme coin manias.
Eric Trump’s Ethereum moment may now be remembered in a similar light — a sign not of a promising entry but of an overheated market ripe for correction.
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Ethereum’s Technical Breakdown
Since that fateful endorsement, Ethereum has broken below multiple key support levels. The decline has erased a substantial portion of its earlier gains and is testing investor conviction at current levels. Traders are closely watching for signs of capitulation or structural bottoming, but as of now, bearish momentum remains in play.
Macro factors have not been favorable either. With regulatory uncertainty surrounding Ethereum’s potential classification as a security in the U.S., sluggish institutional flows compared to Bitcoin, and rising competition from newer smart contract platforms, ETH has struggled to regain bullish traction.
A Lesson in Market Timing
The Ethereum drop serves as a stark reminder of the risks tied to market timing — especially when that timing is influenced by celebrity or politically-adjacent commentary. While public endorsements can drive short-term sentiment, they rarely align with sound technical or macro analysis. In this case, what appeared to be a casual, bullish comment from Eric Trump now marks what many traders regard as the local top for Ethereum.
Merlijn The Trader’s assessment, rooted in market behavior and historical pattern recognition, resonates with experienced investors who understand the cyclical nature of crypto volatility. As Ethereum seeks to stabilize and potentially reclaim its bullish structure in the future, this episode may serve as yet another chapter in the ever-evolving story of hype cycles, human psychology, and financial markets.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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