Ethereum and Solana rebound as Trump agrees to suspend tariffs on Canada
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Ethereum and Solana rebounded sharply from weekend lows after the United States stopped trade sanctions, and artificial intelligence tokens provided additional momentum.
Ethereum (ETH) and Solana (SOL) recovered late Monday after President Trump extended the tariff suspension period to Canada after reaching a similar agreement with Mexico, easing concerns about an escalation in the North American trade war.
The world's second-largest cryptocurrency rebounded to $2,881 after plunging to $2,135 during Asian trading hours, the largest single-day drop since May 2021.
According to Decrypt, Ethereum futures positions plunged 18% during the frenzied trading in the early U.S. market on Monday, wiping out more than $600 million in Ethereum futures positions.
Meanwhile, Solana showed more resilience, rising 13.5% from an intraday low of $190 to $216. Solana was largely unchanged at $218, according to the data.
“Strong performers of this cycle, such as SOL and XRP, led the recovery, while AI-related tokens, which were the worst performers yesterday, also rebounded,” Min Jung, an analyst at Presto Research, told Decrypt.
The suspension of tariffs on Mexico and Canada “provided additional bids for SOL,” Jung said.
The market turmoil began after Trump threatened to impose tariffs on the United States’ largest trading partner, sparking inflation concerns and tighter monetary policy.
The sell-off sparked by geopolitical tensions triggered more than $2.2 billion in crypto derivatives liquidations, one of the heaviest in the industry’s history.
However, some observers, such as Bybit CEO Ben Zhou, noted that the number may be underestimated due to API limitations of exchange data.
Jung noted that ETH’s recovery “initially lagged” but “rebounded strongly” after Eric Trump’s post on X about cryptocurrencies.
Eric Trump said on the social media platform: "In my opinion, now is a good time to add ETH."
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