Eric Trump is urging investors to "Buy the Dip" for Bitcoin and Ethereum, reiterating a call he made first in February in a new post on X. His post, which included stock symbols for both assets, shows his support for the latest price correction in the cryptocurrency market.
Bitcoin Drops Below $113,500, Hits Oversold Zone After Dropping $8,000
This warning comes as Bitcoin shows continuous signs of weakness. The price has dropped another 0.29% in the past four hours, down to $113,434.
This move has pushed BTC price further down below an important technical indicator, the 50-day EMA, now at $116,712. For traders, this is a clear signal that the downtrend is still under control.
The Relative Strength Index (RSI), a measure of market momentum, has dropped to 29.80. This index indicates that Bitcoin is in a state of "oversold", but still below the neutral level of 50, suggesting that buying pressure remains weak.
BTC has now lost more than $8,000 since the peak at the end of July, just shy of hitting the $121,000 mark. The important support level it broke around $116,700 at that time has now reversed into a new resistance level. Persistent weakness below this level indicates the control of the sellers.
If the oversold condition attracts some buyers for a short-term recovery, the price still needs to reclaim the $116,700 mark to change the trend. Otherwise, the downward momentum could extend towards the $110,000 region.
Ethereum Drops Below $3.6 Thousand, RSI Signals Oversold Condition After Dropping $500
Ethereum is also in a similar situation. Ethereum has decreased by 0.03% in the past four hours, trading at $3,507 after dropping from $3,513. This decline has extended a more severe downward trend from the peak at the end of July near $4,000.
Like Bitcoin, ETH has also dropped below the 50-day EMA 4-hour line at $3,686, confirming bearish pressure.
The RSI of ETH is also in the oversold region at 29.87, indicating the possibility of a price rebound if buyers come in. However, trading volume shows steady selling pressure, and the price has recently broken below the bullish channel pattern formed in July.
That broken support level now also serves as a resistance level. Having lost nearly $500 from last week's high, failing to maintain the current level could put the price at risk of further decline towards the $3,400 support zone.
What Happened After Eric Trump's Last Big Call on Cryptocurrency?
Previously, on February 4, Eric Trump encouraged investors to buy Ethereum, stating: "In my opinion, this is a great time to add ETH. You can thank me later."
What happened next is a lesson in cryptocurrency volatility. Shortly after his post, the price of Ethereum dropped nearly 37%, hitting a low near $1,470 in April. However, for those who persevered, his prediction eventually proved correct. By mid-July, ETH had recovered to $3,700, delivering solid growth over the five-month period.
However, the incident has sparked irony and skepticism as a company linked to Trump, World Liberty Financial, reportedly sold around 5,500 ETH at a significant loss, about 55% below the average cost, highlighting the short-term downside risks of the buying order.