Political Figure's Investment Advice Delivers Modest Gains Despite Market Volatility
Investors who followed Eric Trump's February investment recommendation to add Ethereum to their portfolios are finally seeing positive returns after a tumultuous five-month period marked by significant volatility and gradual recovery.
Trump's February 4 tweet stating "In my opinion, it's a great time to add $ETH" has delivered approximately 2.9% gains for followers, with Ethereum recovering from his recommended entry point of $2,870 to current levels near $2,962.
Market Turmoil Following Trump's Call
The investment advice came at a precarious moment for cryptocurrency markets. Just one day before Trump's tweet, Ethereum crashed nearly 18% to $2,544 amid a massive liquidation event that wiped out $2.3 billion in overleveraged long positions across the cryptocurrency market.
The initial decline was exacerbated by macroeconomic uncertainty surrounding President Donald Trump's tariff policies, along with broader concerns about inflation and central bank monetary policy decisions that created additional pressure on risk assets.
Temporary Relief and Continued Decline
Markets experienced brief optimism when Donald Trump announced a temporary pause on proposed tariffs against Canada roughly 24 hours after Eric Trump's Ethereum recommendation. This development triggered a short-lived rally as traders interpreted the move as evidence of easing trade tensions.
However, the broader downtrend persisted well into March, with analysts describing the period as a "miserable run" that required "a circuit breaker on sentiment," according to Pav Hundal, lead market analyst at Swyftx.
April Low and Tariff Impact
By early April, tariffs on China had taken effect, triggering a global trade policy shakeout that sent Ethereum, along with Bitcoin and other crypto assets, into weeks of intense volatility. Ethereum reached its cycle low near $1,500, representing a significant decline from Trump's recommended entry point.
The April bottom marked approximately a 48% decline from Trump's February recommendation, testing the resolve of investors who had followed his investment advice during an extended period of underperformance.
Pectra Upgrade Provides Technical Catalyst
May brought a powerful reversal as Ethereum surged back above $2,700, driven by renewed buying interest surrounding the Pectra Upgrade—described as Ethereum's most ambitious technical improvement to date.
The upgrade enhanced network functionality and addressed scalability concerns, providing fundamental support for price recovery. However, the initial enthusiasm proved insufficient to generate sustainable momentum beyond pre-upgrade levels.
In my opinion, it’s a great time to add $ETH.
Technical Progress vs. Market Performance
Despite the significance of the Pectra rollout, Ethereum's price remained relatively flat near $2,800 approximately one month after implementation. While the upgrade improved network functionality, it failed to spark the breakout that many technical analysts had anticipated.
Network activity remained subdued following the upgrade, suggesting that technical improvements alone were insufficient to drive sustained price appreciation without corresponding increases in user adoption and transaction volume.
Recent Momentum and Bitcoin Correlation
By late June, Ethereum had stabilized above its April lows and finally broke above Trump's February recommendation level for the first time since the initial call. Current trading near $3,000 represents the first sustained period of profitability for investors who followed the recommendation.
Recent gains of 6.2% in a single day have been primarily driven by momentum from Bitcoin's latest breakout to new all-time highs, demonstrating the continued correlation between major cryptocurrency assets during bull market phases.
Political Influence on Crypto Markets
Eric Trump's investment recommendation highlights the growing intersection between political figures and cryptocurrency market sentiment. While his call ultimately proved profitable, the extended period of underperformance demonstrates the challenges of timing cryptocurrency investments even with insider political knowledge.
The eventual success of the recommendation may reflect broader market cycles rather than superior market timing, as Ethereum's recovery coincided with general cryptocurrency market strength rather than specific catalysts related to Trump's analysis.
Coinasity's Investment Analysis
At Coinasity, we view Eric Trump's eventual success as more indicative of cryptocurrency market resilience than investment acumen. The 2.9% gain over five months significantly underperformed traditional market indices and demonstrated the challenges of cryptocurrency volatility.
The 48% drawdown experienced by followers would have tested most investors' risk tolerance, particularly those without strong conviction in Ethereum's long-term fundamentals. This highlights the importance of position sizing and risk management when following celebrity investment advice.
The Pectra Upgrade provided the fundamental catalyst for recovery, suggesting that technical development remains more reliable than political endorsements for sustainable price appreciation.
We note that Bitcoin's correlation continues driving Ethereum's recent performance, indicating that broader market sentiment remains more influential than Ethereum-specific developments for short-term price movements.
Risk Management Lessons
The Eric Trump Ethereum recommendation serves as a case study in cryptocurrency investment timing and risk management. While the call ultimately proved profitable, the extended underwater period and significant volatility demonstrate the importance of proper position sizing and realistic expectations when following public investment recommendations.
Investors who maintained positions through the volatility were eventually rewarded, but those requiring shorter investment horizons or those who panic-sold during the April lows would have experienced significant losses despite following seemingly credible advice from a politically connected individual.
DISCLAIMER
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments involve substantial risk and extreme volatility - never invest money you cannot afford to lose completely. The author may hold positions in the cryptocurrencies mentioned, which could bias the presented information. Always conduct your own research and consider consulting a qualified financial advisor before making any investment decisions.
About Arnas B
Blockchain Researcher & Developer | 8+ Years Crypto Market Experience
Seasoned cryptocurrency researcher and blockchain developer with deep expertise in protocol analysis, smart contract development, and market insights since 2017. Specializes in emerging blockchain technologies, DeFi ecosystems, and cryptocurrency market trends. Combines technical development skills with comprehensive market research to deliver actionable insights for the digital asset space.
