Eric Trump’s attempt to ride the Ethereum (ETH) wave has taken a disastrous turn. Just a little over a month after he publicly declared it was a “great time” to buy ETH, the cryptocurrency has crashed by more than 30%, erasing billions in market value.

On February 4, Trump took to X (formerly Twitter) to advocate for Ethereum, suggesting it was a prime buying opportunity while the asset was trading at around $2,735. His statement drew significant attention from crypto enthusiasts and political followers alike. However, the market had other plans. As of today, Ethereum has plunged to $1,855, leaving those who took his advice deep in the red.

Trump Family’s Crypto Ties and the Ethereum Wipeout

Eric Trump’s endorsement of Ethereum was not entirely random. The Trump-backed cryptocurrency project, World Liberty Financial, has been heavily involved in ETH accumulation. According to data from blockchain analytics firm Spot On Chain, the project currently holds around 23,991 ETH, valued at $44.46 million as of today.

Unfortunately, the numbers reveal an ugly truth. The platform bought ETH at an average price of $3,148 per coin, meaning its holdings have suffered significant losses. With an average selling price of $2,909, the project has already booked realized losses of over $32,694 and is currently facing unrealized losses of nearly $18.99 million.

Adding to the confusion, Eric Trump previously stated that Ethereum would be a core part of a U.S. strategic cryptocurrency reserve under his father’s administration. However, when Donald Trump later signed an executive order addressing digital assets, Ethereum was not mentioned at all, leaving investors puzzled about the family’s actual stance.

Why Did Ethereum’s Price Collapse?

Ethereum’s dramatic decline can be attributed to several factors, including broader market conditions and investor sentiment.

1. Regulatory Uncertainty in the U.S.

While many had hoped for a clear and favorable regulatory framework under a Trump-led administration, no concrete policies have been introduced to support Ethereum’s growth. The lack of clarity has left investors hesitant to make bullish bets.

2. Global Market Turmoil

The cryptocurrency market has been under pressure due to macroeconomic concerns, including rising interest rates, fears of a global recession, and escalating trade tensions. These factors have pushed investors away from risky assets, including ETH.

3. Institutional Sell-Offs

Ethereum has seen significant selling from institutional investors, further weighing on its price. With major players offloading large amounts of ETH, the downward momentum has been difficult to stop.

4. Lack of Major Catalysts for Ethereum

Unlike Bitcoin, which has gained momentum thanks to the approval of ETFs and increasing adoption by institutions, Ethereum has struggled to find a strong narrative that could push its price higher. Many are waiting for key updates like Ethereum’s next major upgrade, but the uncertainty has led to reduced confidence among traders.

What’s Next for Ethereum?

At the time of writing, Ethereum is hovering around $1,855, marking a 10.24% drop in just 24 hours. Since the start of the year, ETH has plummeted 44%, making it one of the worst-performing major cryptocurrencies.

Analysts are divided on where Ethereum might go next. Some believe ETH could find support in the $1,800–$1,900 range, potentially stabilizing before another move. However, others warn of a deeper drop, with some predicting ETH could test levels below $1,700 if selling pressure continues.

Final Verdict—A Buying Opportunity or a Cautionary Tale?

Eric Trump’s bold Ethereum call has, for now, aged poorly. Those who followed his advice are sitting on steep losses, and uncertainty continues to cloud Ethereum’s short-term future.

However, some long-term investors still see potential in Ethereum, citing its dominance in decentralized finance (DeFi) and NFTs. If regulatory clarity improves and institutional adoption grows, ETH could stage a recovery.

For now, though, traders might want to be more cautious—at least until Ethereum shows signs of stability. And as for Trump’s crypto market timing? The results speak for themselves.