TLDR
- Ethereum price jumped 15% ($2,200 to $2,550) on March 2, 2025, after Trump confirmed its inclusion in the new U.S. Crypto Strategic Reserve
- Market data shows bullish sentiment with $1.14B in long positions versus $333M in shorts
- New Ethereum Foundation leadership announcement preceded the price movement
- Price charts indicate potential for continued upward movement
- Other cryptocurrencies (SOL, XRP, ADA) included in the reserve also saw major gains
The cryptocurrency market witnessed a notable surge on Sunday as Ethereum’s price rose sharply following confirmation of its inclusion in the newly established U.S. Crypto Strategic Reserve. The price movement came after a series of announcements that initially created confusion in the market.
Former President Donald Trump released the news through his social media platform, Truth Social, though the initial announcement caused temporary market uncertainty. The first post mentioned several alternative cryptocurrencies but notably omitted Ethereum, leading to brief market hesitation.
A follow-up post provided clarity about Ethereum’s status, with Trump stating explicitly that “BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.” This confirmation triggered immediate market action, with ETH’s price climbing from $2,200 to $2,550 within sixty minutes.
The price movement coincided with substantial activity in the derivatives market. Current data shows bulls maintaining a strong position, with long positions reaching $1.14 billion compared to short positions of $333 million, suggesting sustained buying pressure.
Trading volume increased markedly during the price surge, indicating broad market participation. The uptick in volume provides additional validation for the price movement, according to market analysts tracking the data.
The weekend’s events followed a major organizational announcement from the Ethereum Foundation. On Saturday, March 1, the Foundation revealed its appointment of two new co-Executive Directors: Hsiao-Wei Wang, who brings seven years of core research experience, and Tomasz Stańczak, the CEO of Nethermind.
Market Analysis
Market charts show ETH trading patterns forming a falling wedge breakout, traditionally considered a bullish pattern. The current price hovers near $2,514, with the next resistance level identified around $2,800.
Technical analysis suggests potential for further price appreciation, with some analysts pointing to the $3,000 level as the next major target. The declining number of short positions adds support to this outlook.
The U.S. government’s planned cryptocurrency purchases have impacted other digital assets as well. Both XRP and Cardano recorded gains exceeding 20% following their inclusion in the strategic reserve announcement.
Market participants anticipate additional buying pressure when U.S.-based ETF investors return to trading on Monday. Many traders have already positioned themselves for potential continued price appreciation.
The derivatives market structure shows diminishing resistance as ETH approaches higher price levels, supported by the declining number of short positions and increasing long interest.
Professional traders have noted the importance of maintaining the $2,500 price level for continued upward momentum. A drop below this point could lead to a retest of support around $2,300.
The market response highlights the growing intersection between government policy and cryptocurrency markets. The strategic reserve announcement represents a new phase in institutional cryptocurrency adoption.
Ethereum’s price action remained steady in the hours following the initial surge, maintaining levels above $2,500 as markets prepared for the start of the traditional trading week.
At press time, trading data shows continued buyer interest, with order books indicating sustained demand at current price levels.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
