Ethereum skyrocketed from $2,300 to over $2,900 in 24 hours following a volatile market drop and subsequent recovery.

Political events, including a pause on tariffs by President Trump and support from Eric Trump, played a role in the movement of Ethereum's price.

World Liberty Financial liquidated 90% of its $363 million in cryptocurrencies, coinciding with an increase in ETH deposits from new and inactive wallets.

The Ethereum cryptocurrency market experienced a substantial price increase that took it from $2,300 to $2,900 over the course of a single day. The market rebound occurred shortly after a drop on February 3 that sent Ether prices to around $2,300. The price recovery coincided with key political and financial developments that influenced investor sentiment.

Political developments impact Ethereum's price

Ethereum's initial surge to around $2,700 occurred after U.S. President Donald Trump announced a temporary pause on planned trade tariffs affecting Canada and Mexico. Shortly thereafter, Eric Trump's endorsement of Ethereum on X acted as a catalyst, further accelerating the price increase. The rapid recovery highlighted the sensitivity of cryptocurrency markets to political events and public endorsements by high-profile figures.

World Liberty Financial's cryptocurrency liquidation

Ethereum's sharp rebound followed a massive sell-off by World Liberty Financial, a decentralized finance (DeFi) project allegedly linked to President Donald Trump. On February 3, the project liquidated over 90% of its $363 million in cryptocurrencies, including substantial amounts of ETH, WBTC, AAVE, ENA, and LINK. The assets were transferred to Coinbase Prime and other exchange wallets, often routed through intermediary addresses. The liquidation coincided with an increase in deposits of E$ETH