Ethereum's price movement today has been influenced by a mix of macroeconomic factors and market sentiment. The cryptocurrency has faced pressure from rising U.S. bond yields, which have surged amid a hawkish stance from the Federal Reserve. This has contributed to a broader sell-off in the crypto market, with Ethereum experiencing significant outflows from spot exchange-traded funds. On Wednesday, these funds saw net outflows of $159 million, following $86 million the previous day. Additionally, the increase in Ethereum held on exchanges suggests that investors are liquidating their holdings, further contributing to the downward pressure on its price.
Despite the current challenges, there is optimism surrounding Ethereum's future prospects. Experts predict higher implied volatility and optimism ahead of an upcoming technical upgrade, which could enhance Ethereum's scalability and appeal for traders and developers. Anthony Rousseau, head of brokerage solutions at TradeNation, noted, "In 2025, we expect implied volatility (IV) for both Bitcoin and Ethereum to remain elevated, driven by ongoing geopolitical events, regulatory developments, and market adoption." This sentiment reflects the potential for Ethereum to regain its lead in decentralized exchange metrics and see a resurgence in total value locked and user activity.
Ethereum's price has seen a slight decline of 0.54% today, with the current price at $3,248.84. The cryptocurrency reached a high of $3,268.82 and a low of $3,240.25 during the day.