ConsenSys CEO Joseph Lubin recently suggested that US President Donald Trump’s family may “build one or more giant businesses” on Ethereum (ETH). Responding to an X thread about Trump’s recent ETH purchases, Lubin stated that the Trump Administration is exploring ways the US could support Ethereum.

Trump Family To Start Businesses On Ethereum?

After a relatively subdued price performance and limited public attention in 2024, ETH may be set for a resurgence in 2025. In a post on X, crypto expert DCinvestor highlighted that Trump-backed decentralized finance (DeFi) venture World Liberty Financial has significantly increased its ETH holdings.

Data from Etherscan reveals that World Liberty Financial’s wallet currently holds 55,719 ETH, valued at over $183 million at the time of writing. Lubin’s recent comments hint at a deeper involvement by the Trump family in the cryptocurrency industry. He said:

The Trump Administration will do what is good for the USA and that will involve ETH, considerations of how the USA can support Ethereum — the most capable and largest decentralized protocol ecosystem for the benefit of the USA, and perhaps eventually use Ethereum technology in government activities just as they currently use the internet and web protocols.

Lubin further noted that, in addition to Ethereum, the Trump family might engage with other blockchain ecosystems, such as Bitcoin and Solana. The recent launch of the official Trump meme token on Solana appears to validate this statement.

Besides ETH, the World Liberty Financial wallet holds other tokens such as Aave (AAVE) and Chainlink (LINK). The DeFi project is expected to become operational soon.

Analysts Eye ETH Rally Soon

As Ethereum continues to trade in the low $3,000 range, crypto analysts are becoming increasingly confident of an imminent rally for the the second-largest digital asset by market cap. 

Seasoned crypto trader Michael van de Poppe highlighted World Liberty Financial’s growing ETH exposure as a bullish signal for the cryptocurrency. Poppe added that 2025 could mark a turning point for Ethereum’s performance.

From a technical perspective, crypto analyst Jelle shared a weekly ETH chart illustrating a bullish inverse head-and-shoulders pattern in formation, along with a massive ascending triangle that Ethereum may soon break out of.

Similarly, crypto analyst TraderSZ shared the following ETH daily chart, showing a bullish descending triangle pattern. The analyst remains long-term bullish on ETH, projecting targets as high as $10,000.

However, Ethereum’s prolonged underperformance has begun to dent the confidence of some whales. At press time, ETH trades at $3,278, down 1% in the past 24 hours.

Featured Image from Unsplash.com, Charts from X and TradingView.com

Data shows the Ethereum Leverage Ratio has continued to see sharp growth recently, something that could lead to volatility for ETH’s price.

Ethereum Estimated Leverage Ratio Has Been Setting New Highs Recently

As explained by an analyst in a CryptoQuant Quicktake post, the Ethereum Estimated Leverage Ratio has been following an upward trajectory for a while now. The “Estimated Leverage Ratio” here refers to an indicator that calculates the ratio between the ETH Open Interest and Derivatives Exchange Reserve.

The former of these, the Open Interest, measures the total amount of derivatives positions related to the asset that are currently open on all centralized exchanges, and the latter, the Derivatives Exchange Reserve, keeps track of the number of tokens that investors have deposited into derivatives platforms.

When the value of the Estimated Leverage Ratio rises, it means the Open Interest is going up relative to the Derivatives Exchange Reserve. Such a trend implies that, on average, the users are opting for a higher amount of leverage with their positions.

On the other hand, the indicator going down suggests the appetite for risk may be going down among the traders as they are decreasing the amount of leverage attached to their positions.

Now, here is a chart that shows the trend in the Estimated Leverage Ratio for Ethereum over the past year and a half:

The value of the metric appears to have been sharply going up over the last few months | Source: CryptoQuant

As displayed in the above graph, the Ethereum Estimated Leverage Ratio has been riding an uptrend for the past few months, implying the investors have increasingly been willing to take on higher risk.

Historically, a high amount of leverage in the market has generally led to volatile price action for the cryptocurrency. The reason behind this is the fact that mass liquidation events become probable to occur in such an environment.

During a mass liquidation event (popularly known as a squeeze), a sudden swing in the price triggers a large amount of liquidations at once. These liquidations feed back into the price move, causing even more liquidations.

Given that the Ethereum Estimated Leverage Ratio is sitting at extreme levels, the chances of traders finding liquidation are high. It’s uncertain, though, which side of the market a potential squeeze in the near future would involve.

Long investors getting wrapped up in the event would naturally lead to a bearish outcome for ETH, while a short squeeze could kickstart a wave of bullish price action. It only remains to be seen how the volatility emerging from the high leverage, if any, would end up affecting the asset.

ETH Price

At the time of writing, Ethereum is trading around $3,300, down around 1% over the past week.

Looks like the price of the coin has been trading sideways over the last few days | Source: ETHUSDT on TradingView

Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com