Eric Trump once again calls for buying Bitcoin and Ethereum during the market correction, reiterating the message he made back in February. His post comes as both BTC and ETH are trading below significant technical levels, signaling a continued downtrend.
Bitcoin lost the 113,500 USD mark, hitting the oversold zone.
BTC is currently down to 113,434 USD, losing over 8,000 USD from the peak at the end of July.
The price has breached the 50-day EMA (116,712 USD), reinforcing the downtrend.
RSI has dropped to 29.8, in the 'oversold' zone, but buying pressure remains weak.
The 116,700 USD mark has now become an important resistance. If it cannot recover above this threshold, BTC may continue to drop to 110,000 USD.
Ethereum lost 500 USD, breaking the bullish channel.
ETH is currently at 3,507 USD, down nearly 500 USD from the peak of 4,000 USD at the end of July.
The price broke through the 50-day EMA and the bullish channel, confirming a weakening trend.
RSI at 29.87, indicating potential technical recovery, but volume still leans toward the sell side.
If support around 3,400 USD is not maintained, ETH risks a deeper decline.
Does history repeat itself?
Back in February, after Eric Trump's call to 'buy ETH', the price plummeted nearly 37%, hitting a low of 1,470 USD in April. However, by mid-July, ETH had strongly recovered to 3,700 USD – a testament to the strategy of 'buying in a panic'.
However, not all have been successful. A company related to Trump was found to have sold 5,500 ETH at a loss, with a loss of over 55%, indicating that even insiders are not immune to short-term risks.
Investor perspective
Eric Trump's message is more psychological than strategic. In the context of weak technicals and rising short-term risks, investors need to prioritize capital management rather than buying impulsively. 'Buying the dip' is only effective with a clear plan and long-term patience.
