Ethereum's price movement today has been influenced by a combination of market retracement and broader economic factors. The cryptocurrency has seen a significant pullback from its New Year highs, falling below the $3,300 support level. This decline is part of a larger market correction that has affected major cryptocurrencies, including Bitcoin, which experienced a 7.2% drop in 24 hours. Analysts have noted that Ethereum is forming a potential bullish reversal pattern, which could lead to new highs if the market stabilizes. However, the immediate pressure on Ethereum's price is evident as it struggles to maintain key support levels.
The release of stronger-than-expected U.S. employment data has also played a role in today's market dynamics. The U.S. economy added 256,000 jobs in December, far exceeding expectations and leading to a reassessment of the Federal Reserve's rate cut trajectory for 2025. This has resulted in a surge in bond yields and a stronger dollar, putting additional pressure on risk assets like cryptocurrencies. The robust job numbers have led investors to question the likelihood of further rate cuts, which had previously supported crypto markets.
Ethereum's price has decreased by 0.72% today, with the current price at $3,196.11. The cryptocurrency reached a high of $3,319.76 earlier in the day but has since retreated to its lowest point.