U.S. President Donald Trump has dramatically shifted his crypto strategy, with Ethereum (ETH) now making up 92% of his company’s portfolio.
This move comes as the broader crypto market faces turbulence, with Bitcoin trading near $115,000 and Ethereum slipping below $4,400. Despite the downturn, analysts say Trump’s concentrated ETH bet signals confidence in the asset’s long-term strength.
Trump’s pivot aligns with broader institutional adoption of Ethereum. In 2025, Ethereum-based ETFs absorbed more than 500,000 ETH in a single month, surpassing new issuance since the Merge.
This scarcity effect has fueled expectations of higher valuations, with Standard Chartered recently raising its ETH target price to $7,500. Some analysts even forecast $12,000 over the next five years if adoption trends continue.
Institutional Inflows and Whale Activity Drive Ethereum (ETH) Demand
Ethereum remains the backbone of DeFi, commanding over 78% of total value locked in Q2 2025. However, this dominance comes with risks. Leveraged whale strategies and large-scale withdrawals have exposed liquidity weaknesses in the ecosystem.
A 300,000 ETH withdrawal in July pushed Ethereum’s staking exit queue to 13 days, highlighting the network’s fragility under stress.
Similarly, whales are accumulating on Ethereum (ETH). A single investor boosted holdings to over 76,000 ETH, valued at $342 million, while Ethereum co-founder Jeffrey Wilcke recently transferred nearly 10,000 ETH to Kraken.
Analysts See a Buying Window for Ethereum
While Ethereum faces technical resistance around $4,000–$4,400, its structural strength remains intact. Analysts believe that ETH’s deflationary mechanics, Layer-2 scaling, and institutional inflows position it for a strong recovery once market sentiment stabilizes.
Trump’s aggressive ETH allocation is also being interpreted as a political and financial statement. His policy moves, such as expanding 401(k) eligibility for crypto, could accelerate mainstream adoption.
For investors, the increased regulatory support and growing institutional demand indicate that the current dip might be a smart buying opportunity instead of a cause for concern.
Whether Trump’s bold bet pays off could depend on how Ethereum weathers its leverage and security risks, but analysts agree the long-term trajectory remains bullish.
Cover image from ChatGPT, ETHUSD chart from Tradingview
