Ethereum's recent price movement is influenced by a mix of market dynamics and investor sentiment. Despite a strong start to the year, Ethereum experienced a pullback, dipping below the $3,320 support level as part of a broader market retrace. This decline comes even as analysts remain optimistic about Ethereum's growth potential in the first quarter of 2025. Notably, crypto analyst Rekt Capital pointed out that Ethereum is forming a multi-month inverse Head and Shoulders pattern, which could signal a significant price increase if the pattern holds. Additionally, a Bitwise Asset Management survey revealed that while crypto allocations have doubled y/y, only 35% of financial advisors can invest in crypto for their clients, adding to market volatility as individual investors navigate independently.
The Volatility Shares Trust 2x Ether ETF (ETHU) saw a decline, dropping 1.90% to $7.21 at 10:00 AM on Friday, January 10.