Ethereum slides: Will $2K hold?

March 04, 2025

Reading time: 5 minutes

Trump’s crypto reserve plan: Bold strategy or political gamble?

Key points:

  • President Trump’s plan to include Ethereum, Solana, XRP, and Cardano in a U.S. strategic crypto reserve has puzzled analysts.

  • Some experts believe Trump’s mention of altcoins is a negotiation tactic to secure Bitcoin and Ethereum as reserve assets.

  • Critics, including Peter Schiff, accuse Trump of orchestrating a crypto pump-and-dump scheme.

News - President Donald Trump’s announcement of a U.S. strategic crypto reserve has sparked debate across the crypto industry. While Bitcoin’s inclusion was expected, his decision to add Ethereum (ETH), Solana (SOL), XRP (XRP), and Cardano (ADA) has left analysts questioning the rationale behind the move.

Investment firm Bernstein expressed skepticism, noting that while Bitcoin is widely regarded as “digital gold,” the justification for holding altcoins in a national reserve remains unclear. The firm highlighted potential legislative hurdles, as Trump would need Congressional approval before implementing such a reserve.

Political strategy or market manipulation? - Some believe Trump’s inclusion of altcoins is a negotiation strategy, drawing comparisons to his real estate tactics. By starting with extreme demands (listing multiple altcoins), he may be setting the stage to compromise and secure Bitcoin and Ethereum instead.

Others, however, have raised serious concerns. Economist Peter Schiff accused Trump of orchestrating “the biggest crypto rug pull of all time,” alleging that the announcement allowed insiders to profit from market movements. Schiff has called for a Congressional investigation, demanding an audit of crypto transactions before and after Trump’s announcement.

Market reaction and next steps - The announcement initially sent crypto prices soaring, with Bitcoin nearing $95,000 and altcoins like ADA and XRP gaining double digits. However, the rally was short-lived as market skepticism led to a sharp pullback.

With Trump’s first White House Crypto Summit scheduled for March 7, the industry awaits further details on his crypto strategy. Whether this plan materializes or remains political rhetoric remains to be seen.

Bitcoin slips below $82K as trade war fears weigh on markets

Key points:

  • Bitcoin dropped to $82,000, erasing recent gains as U.S. trade tariffs against Canada, Mexico, and China fueled market-wide uncertainty.

  • Investor sentiment has turned bearish, with analysts predicting a potential retest of the $78,000 support level and possible further downside toward $70,000.

  • Gold is outperforming Bitcoin, with analysts noting that BTC is no longer viewed as a "safe haven" asset in times of economic uncertainty.

News - Bitcoin faced a steep decline on March 4, slipping below $82,000 as U.S. trade tariffs took effect, sending shockwaves across financial markets. The leading cryptocurrency, which had briefly touched $95,000 on March 2, has now erased its recent rally amid heightened economic uncertainty.

The downturn followed President Donald Trump’s decision to impose tariffs on Mexico, Canada, and China, raising concerns about escalating trade tensions. This triggered a sell-off in risk assets, including Bitcoin, stocks, and oil, as investors sought safer alternatives such as gold.

"This downturn could intensify pressure on Trump, especially after the strong support and donations he received from the crypto community during his campaign," trading firm QCP Capital noted.

Bitcoin’s decline has also been exacerbated by $980 million in liquidations across the crypto market, with over $350 million in long BTC positions wiped out between March 3 and March 4, according to CoinGlass data. Analysts highlight that buyer interest remains concentrated in the $70,000-$80,000 range, suggesting that BTC might further dip before finding stable ground.

Is Bitcoin headed for a deeper correction? - Market analysts are now debating whether Bitcoin could fall below its key 200-day simple moving average (SMA) at $82,500. Historically, a breach of this level has signaled further downside pressure, with $78,000 and $73,600 emerging as critical support zones.

Crypto strategist Michael van de Poppe noted that if Bitcoin fails to hold above $78,200, a sharp correction could push it toward the mid-$70,000 range. "Honestly, I think we’ll need to wait until this week is over as there's a lot of macro-economic data and events and the Summit," he added.

Additionally, a bearish crossover between the 50-day and 100-day SMAs has raised concerns about prolonged selling pressure. This trend reversal suggests Bitcoin’s market sentiment is shifting from bullish to bearish, at least in the short term.

Bitcoin loses its "safe haven" status? - A growing concern among analysts is that Bitcoin is no longer being viewed as a safe-haven asset, especially in times of economic uncertainty. Gold prices have surged 10% year-to-date, while Bitcoin has dropped nearly 10% since the start of 2025.

“The real driver here is the GLOBAL move towards the risk-off trade,” noted The Kobeissi Letter in a recent market analysis. "As trade war tensions rise and economic policy uncertainty broadens, ALL risky assets are falling. This was seen in stocks, crypto and oil prices which all fell sharply today. Safe havens are thriving."

As Bitcoin struggles to regain lost ground, investors will be watching closely for any signs of recovery ahead of the White House Crypto Summit on March 7, where details on Trump’s proposed strategic crypto reserve may provide a much-needed boost to market sentiment.

ETH dips near $2K as liquidation risks loom: Will bears push it lower?

  • Ethereum (ETH) has plunged 30% in the past month, pushing the ETH/BTC ratio to 0.02, its lowest since January 2021.

  • A MakerDAO position worth $126 million came within 4% of liquidation, with three key levels between $1,796 and $1,929 potentially triggering further sell-offs.

  • Increased ETH supply and weaker demand continue to pressure prices, with $1.3 billion worth of ETH at risk of liquidation.

News - Ethereum (ETH) has seen a sharp decline, dropping over 30% in the last 30 days and retracing all of its recent gains. Currently trading at around $2,089, ETH is now facing one of its most significant liquidation risks in recent months, raising concerns over further downside pressure.

Data shows that a major MakerDAO position worth $126 million was just 4% away from liquidation on Tuesday, narrowly avoiding a cascade of liquidations that could have driven prices lower. Several other positions, totaling $349 million, are set to be liquidated if ETH drops below key support levels of $1,929, $1,844, and $1,796.

Liquidations in DeFi protocols like MakerDAO often have a more direct impact on market prices than those in futures markets, as they involve real spot assets rather than derivatives. This means that if liquidations are triggered, ETH collateral will be sold at a discount, adding further downward pressure.

ETH faces supply pressure and weak demand - Adding to ETH’s woes, an increase in circulating supply has contributed to selling pressure. Over the last 30 days, 66,748 ETH—valued at over $140 million—have entered circulation due to a slowdown in Ethereum’s burn rate. If demand does not pick up to absorb this additional supply, ETH’s price may continue to struggle.

The ETH/BTC ratio has also dropped to its lowest point since January 2021, standing at just 0.02. This highlights Ethereum’s underperformance against Bitcoin, which has benefited from institutional inflows through spot BTC ETFs, while Ethereum has lagged in adoption.

What’s next for Ethereum? - From a technical perspective, ETH is currently trading below the lower boundary of a descending parallel channel—a bearish pattern that suggests an acceleration in selling momentum. If the selling pressure continues, ETH could drop below the psychological $2,000 mark, with the next key support at $1,922.

However, if demand rebounds, Ethereum could recover toward $2,223, offering a potential relief rally. The coming days will be crucial in determining whether ETH can hold its ground or face a deeper correction.

Bybit’s $1.4B heist: 77% still traceable, but time is running out

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Key points:

  • Bybit hackers have laundered 100% of the stolen $1.4 billion in just 10 days, primarily using THORChain.

  • 77% of the funds remain traceable, but $280 million has gone dark, making recovery difficult.

  • North Korea’s Lazarus Group is identified as the primary culprit, continuing its crypto heist spree. Bybit has fully compensated affected customers, restoring a 1:1 backing of client assets.

News - The Bybit hacker has successfully laundered the entirety of the $1.4 billion stolen in the largest crypto hack in history, security firm Lookonchain confirmed on March 4. The 500,000 stolen ETH was primarily moved through THORChain, making it increasingly difficult to trace.

Despite the laundering efforts, Bybit CEO Ben Zhou confirmed that 77% of the stolen funds remain traceable, while 3% have been frozen, amounting to around $42 million. However, $280 million worth of stolen assets have gone dark, meaning they have been fully mixed or hidden using privacy-focused protocols like ExCH and OKX Web3 Proxy.

According to blockchain security firm Cyvers, some of the stolen funds may still be recoverable if exchanges and forensic teams act swiftly. Experts suggest that on-chain intelligence and AI-driven tracking models could help identify and freeze some of the illicit transactions before the hackers attempt large-scale cashouts.

North Korea’s Lazarus Group has been identified as the main suspect behind the attack, adding to its growing list of billion-dollar crypto heists. The group is known for using stolen digital assets to fund North Korea’s nuclear weapons program.

Meanwhile, Bybit has fully replenished the stolen assets, ensuring users are not impacted. The exchange remains operational, and its 1:1 asset backing has been restored.

How the hackers laundered the stolen funds

  • The hackers converted 83% of the stolen ETH into BTC and distributed it across 6,954 wallets, each holding an average of 1.71 BTC.

  • THORChain processed over $4.6 billion in swaps, making it the primary tool for laundering the stolen funds.

  • Some stolen assets passed through OKX’s Web3 Proxy, with $65 million still recoverable if the exchange intervenes.

  • Bybit is working with forensic security firms to trace remaining funds and freeze suspect transactions before the hackers attempt further cashouts.

What’s next?

  • Critical window for fund recovery: The next one to two weeks are crucial for authorities and exchanges to freeze more stolen assets before the hackers offload them through OTC and P2P markets.

  • Potential exchange involvement: Some of the stolen ETH is still linked to OKX’s Web3 Proxy, meaning cooperation from the exchange could lead to additional recoveries.

  • Regulatory scrutiny & security upgrades: With hacks becoming more sophisticated, new security measures, such as off-chain transaction validation, could help prevent future large-scale exploits.

  • North Korea’s growing crypto threats: Lazarus Group’s continued success in laundering stolen assets highlights the urgent need for stronger tracking and anti-money laundering (AML) protocols in crypto finance.

Bybit’s rapid response and security firms' ongoing efforts could still salvage some of the stolen funds, but the record-speed laundering raises concerns about the increasing sophistication of crypto cybercriminals.

Interesting facts

  • In 2015, artist Sarah Meyohas introduced Bitchcoin, a cryptocurrency backed by her photographic artworks. Each Bitchcoin was pegged to 25 square inches of Meyohas' photography, making it one of the earliest instances of tokenizing physical art on the blockchain.

  • Burger King's Russian branch launched WhopperCoin in 2017, a cryptocurrency-based loyalty program. Customers received WhopperCoins for purchasing Whopper burgers, which could later be redeemed for free burgers or traded, marking an innovative fusion of fast food and blockchain technology.

  • In February 2025, the Central African Republic launched $CAR, a memecoin aimed at enhancing the country's global profile. This initiative followed the nation's earlier move to adopt Bitcoin as legal tender, reflecting its innovative approach to integrating cryptocurrency into national development strategies.

Top 3 coins of the day

PAX Gold (PAXG)

Key points:

  • At press time, PAXG was trading at $2,926, reflecting a 1.32% increase over the last 24 hours.

  • The price rebounded from the lower Bollinger Band, while MACD hinted at a potential shift in momentum.

What you should know:

PAXG saw a moderate uptick in price, recovering from recent declines as it bounced off the lower Bollinger Band. The asset maintained its upward trajectory within the Bollinger Bands, suggesting a trend continuation, albeit with some short-term volatility. Additionally, the MACD indicator, which had been trending downward, showed signs of convergence, indicating a potential shift in momentum if buying pressure strengthens. Meanwhile, the volume remained relatively stable, hinting at sustained market participation. Traders should monitor the $2,960 resistance level, as a breakout could signal further bullish movement, while the $2,870 support level remains a key zone to watch.

DeXe (DEXE)

Key points:

  • At press time, DEXE was trading at $18.46, reflecting a 3.62% increase over the last 24 hours.

  • The RSI hovered near 50, indicating neutral momentum, while the price remained close to the 9-day SMA.

What you should know:

DEXE posted a modest gain as it maintained a tight trading range around its 9-day Simple Moving Average (SMA), suggesting a consolidation phase. The RSI hovered near the 50 mark, reflecting a balance between buying and selling pressure, which indicated indecisiveness in the market. The price held above the $17.50 support level, but it lacked strong volume to drive a clear breakout. If buying momentum picks up, DEXE could test the $20 resistance level. Conversely, a dip below its SMA may open doors for a potential retest of $16 in the short term.

dogwifhat (WIF)

Key points:

  • At press time, WIF was trading at $0.58, reflecting an 8.55% decline over the last 24 hours.

  • The Parabolic SAR remained above the price candles, signaling continued bearish pressure, while the DMI showed selling dominance.

What you should know:

WIF extended its downward trajectory as selling pressure persisted, pushing the price below the $0.60 mark. The Parabolic SAR dots continued to stay above the price action, reinforcing the prevailing bearish momentum. Meanwhile, the Directional Movement Index (DMI) indicated a strong downtrend, with the -DI (red) line staying above the +DI (green) line. The trading volume increased slightly, suggesting market participants were still active. If WIF fails to reclaim the $0.65 resistance level, further downside movement toward $0.50 could be on the horizon. However, a trend reversal could take shape if buyers manage to push the price above $0.70 in the near term.

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