Daily Crypto Signals: Ethereum Eyes $4K, BNB Surges Following CZ Presidential Pardon
The cryptocurrency market experienced significant developments this week, highlighted by President Trump's pardon of Binance founder CZ
Quick overview
- President Trump pardoned Binance founder Changpeng 'CZ' Zhao, leading to a 3.6% surge in BNB to $1,121.
- Technical indicators suggest Ethereum may rally towards $4,000, supported by a triple bottom formation and increased accumulation by mega whales.
- Bitcoin miners are facing significant financial stress, with debts rising from $2.1 billion to $12.7 billion in a year, prompting diversification into AI and high-performance computing.
- Revolut received a MiCA license to offer regulated crypto services across the European Economic Area, enhancing its platform capabilities.
The cryptocurrency market experienced significant developments this week, highlighted by President Trump’s pardon of Binance founder Changpeng “CZ” Zhao and technical indicators suggesting Ethereum ETH/USD may be poised for a rally toward $4,000. BNB BNB/USD surged 3.6% to $1,121 following the pardon announcement, while Ethereum’s triple bottom formation near $3,750-$3,800 signals potential upside momentum as mega whales accumulate during the recent price dip.
Crypto Market Developments
There were a number of important changes in the bitcoin market that could affect its path in the next weeks. On Wednesday, US President Donald Trump signed a presidential pardon for Changpeng “CZ” Zhao, the founder of Binance. This made it easier for him to return to the exchange he started. The pardon comes after Zhao spent four months in jail for breaking the Bank Secrecy Act by not putting in place a good Anti-Money Laundering policy at Binance.
At a news conference on Thursday, President Trump said he pardoned Zhao because “people say he wasn’t guilty of anything” and “what he did is not even a crime.” Trump said that the decision was influenced by a lot of support from the crypto community and advice from “a lot of people,” but he made it clear that he doesn’t know Zhao personally. Teresa Goody Guillén, CZ’s lawyer, supported the pardon by saying that her client had “NO fraud, NO victims, NO criminal history, NO money laundering” and was “the first and only known first-time offender in US history to receive a prison sentence for this single, non-fraud-related charge.”
In regulatory news, the Cyprus Securities and Exchange Commission gave fintech giant Revolut a Markets in Crypto-Assets (MiCA) license. This means that the business can now offer regulated crypto services in all 30 markets in the European Economic Area. The approval lets Revolut launch its next-generation “Crypto 2.0” platform, which will let users access more than 280 tokens, stake with no fees and get returns of up to 22% per year, and convert stablecoins to US dollars at a 1:1 rate with no spreads. Revolut has over 65 million customers around the world, with 40 million of them in Europe.
According to investment firm VanEck, Bitcoin miners are under more financial stress than ever because their debts have risen from $2.1 billion to $12.7 billion in the previous year. This huge 500% rise shows how miners are racing to get the newest gear to keep their part of the global hashrate as demand for both AI and bitcoin production rises. VanEck analysts called this the “melting ice cube problem” and said that miners have always used equity markets to pay for capital expenses instead of debt. After the halving event in April 2024, which cut mining incentives to 3.125 Bitcoin, several miners have started to diversify their revenue by using their energy capacity to host AI and high-performance computing applications.
Ethereum Shows Promise for $4,000 Breakout
Technical analysts are getting bullish on Ethereum because they see a triple bottom pattern emerging near the $3,750-$3,800 support level. This textbook reversal setup happens when prices test the same support level three times without falling lower. This shows that sellers are getting weaker while buyers discreetly build up their positions. Even if ETH fell 6.50% in October, the fact that this price level has been defended multiple times demonstrates that demand is still strong.
Ethereum’s neckline resistance, which is around $3,950–$4,000 and lines up with the 50-period exponential moving average, is where it will be put to the test. If the price breaks above this level, it would confirm the triple bottom pattern and might push ETH toward a price goal of about $4,280, which is a 10% increase from where it is now. Analysts think this move might happen by the end of October or the beginning of November, and they expect trade volumes to go up a lot when the breakthrough is confirmed.
Onchain data from Glassnode shows that Ethereum’s biggest holders are buying a lot of it, which supports the optimistic technical view. Mega whales with between 10,000 and 100,000 ETH have been buying up ETH at the quickest rate in years. They now own about 28 million ETH. This pattern of redistributing funds shows that smart investors see the current price levels as good places to buy. On the other hand, smaller whale wallets with 1,000 to 10,000 ETH saw their balances drop sharply during the current correction. This suggests that mid-sized holders either sold into the dip or bought enough to migrate into the larger group. When prices are low, giant whales often buy up a lot of supplies, which usually happens before big upward swings in the market.
BNB Rallies on CZ Pardon News
When Trump pardoned CZ, BNB went up right away. Within hours of The Wall Street Journal announcing the news, the token rose 3.6% to an intraday high of $1,121. People in the market think that CZ would be able to come back to Binance as a leader, even though his original plea deal said he couldn’t work there. After being pardoned, CZ said thank you and promised to do “everything we can to help make America the Capital of Crypto and advance Web3 worldwide.”
Some people in the market are saying “BNB up only szn” (season), which means that crypto traders are getting ready for what they think might be a long-term rise in BNB. The excitement has led to more speculation about an upcoming cryptocurrency season. The rally has spread to other tokens, such as World Liberty Financial (WLFI), which rose over 14% to $0.1414 after the pardon was announced. Richard Seiler, co-founder of RR2Capital, said that the pardon could be what the crypto market needs right now. He said, “Crypto could do with a catalyst right now…”That may very well have been it.
BNB’s good momentum is based on recent achievements in institutional adoption, such being added to major exchanges like Coinbase and Robinhood earlier this week. Also, firms that are traded on the stock market have started buying BNB for their treasuries. For example, the biotech company Applied DNA Sciences announced on Wednesday that it had bought 4,908 BNB tokens worth about $5.3 million. After the announcement, the company’s stock price rose by more than 50% throughout the trading day. This shows that investors are quite interested in corporate crypto treasury techniques. These changes, along with the CZ amnesty, put BNB in a good position because traders expect prices to keep going up in the next few weeks.
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