Ethereum Price Surges 21.5% Post-Trump Victory, Overcoming Whale Sell-offs

The cryptocurrency landscape has experienced a significant boost following the unexpected outcome of the 2024 U.S. presidential election, which saw Donald Trump returning to office. This political shake-up has notably influenced the market, sending bitcoin, the leading digital asset, to unprecedented heights, and sparking a resurgence in Altcoins including ethereum. Despite substantial sell-offs by major holders, Ethereum has managed to sustain its upward momentum, crossing the pivotal resistance level that had capped its six-month corrective phase.

As of the latest trading reports, Ethereum’s market price has climbed to approximately $2,950, marking an intraday increment of around 1.3%. Data from market analysts indicate that Ethereum’s total market capitalization stands close to $350 billion, with a daily trading volume hovering around $34.5 million.

Over the past five months, Ethereum had been on a downward corrective trend, sliding from a peak of approximately $3,965 to a trough of $2,140, reflecting a steep 45.5% decline. This trend followed a falling wedge pattern, commonly seen as a bullish signal that suggests a potential reversal upon completion. The recent cut in interest rates by the U.S. Federal Reserve in September shifted Ethereum’s downtrend into a phase of accumulation, with prices stabilizing above $2,190.

The re-election of Donald Trump has injected fresh optimism into the cryptocurrency markets, with Ethereum’s price surging from $2,380 to nearly $2,940—a notable rise of 22% over just a few days. This price movement has decisively broken through the resistance trendline of the wedge pattern. Should this breakout persist, analysts project that Ethereum could soar by an additional 41%, potentially reaching the $4,000 mark.

Despite this bullish momentum, Ethereum faces significant headwinds from major investors, commonly known as whales, who have begun profit-taking. According to reports from on-chain data analytics firm Lookonchain, a notable crypto whale recently offloaded 29,897 eth for around $84 million in USDC. This whale, who initially purchased Ethereum at approximately $3.50 per coin, realized an incredible profit margin, underscoring the magnitude of Ethereum’s price appreciation over the years.

The whale still retains a substantial holding of 368,992 ETH, valued at roughly $1.06 billion. Such significant holdings reflect continued confidence in Ethereum’s long-term potential, despite the sale. While whale activities often induce volatility and can trigger downward corrections, the market’s resilience in absorbing these sales is noteworthy.

Market observers caution that Ethereum could experience a short-term pullback to test its recent breakout level as new support, particularly if selling pressure intensifies. A failure to hold this level could lead to an extended market correction, dampening the recent bullish sentiment.

The recent political developments and their impact on the cryptocurrency market highlight the complex interplay between global events and financial markets. The crypto market’s reaction to Donald Trump’s election victory serves as a reminder of the sector’s sensitivity to macroeconomic and political factors.

As Ethereum navigates this volatile landscape, investors and analysts remain vigilant, closely monitoring market signals and on-chain activity to predict future price movements. While the potential for Ethereum to reach $4,000 remains a topic of significant interest, the path forward will undoubtedly be shaped by both internal market dynamics and external influences.