Ethereum Jumps 13% After Trump Delays Tariffs, Market Recovers

Ether (ETH) rebounded sharply on Tuesday, gaining 13% to $2,845.42 after plunging 25% in the previous session. The recovery followed U.S. President Donald Trump’s decision to delay trade tariffs on Canada and Mexico, boosting investor confidence across risk-driven assets.

The world’s second-largest cryptocurrency also saw renewed buying interest after Eric Trump, son of Donald Trump and a key figure in his business empire, called it a “great time to add Ether.” The remark fueled optimism, prompting traders to scoop up the token after its steep drop.

Monday’s flash crash was driven by heightened risk aversion over Trump’s initial tariff plans, which sent investors rushing to buy put options as protection. Ether’s losses outpaced those of other major cryptocurrencies, including Bitcoin, which briefly fell to $91,000 before rebounding to $101,112.0 on Tuesday, up 8.2%.

Further fueling concerns was Trump’s crypto firm, World Liberty Financial, moving 67,000 ETH onto Coinbase (NASDAQ:COIN), raising speculation of a potential sell-off. It remains unclear whether the firm offloaded its holdings, but fears of liquidation contributed to the market turbulence.

Despite Monday’s turmoil, Ether, like Bitcoin, saw strong dip-buying, as investors seized the opportunity after the tariff postponement. The market’s rapid rebound highlights the ongoing volatility in crypto trading, with macroeconomic events and institutional moves playing a key role in price swings.

As sentiment improves, traders will be watching whether Ether sustains its recovery or faces renewed selling pressure in the days ahead.