Ethereum's price has been significantly impacted today by a combination of macroeconomic factors and internal market dynamics. The broader crypto market, including Ethereum, has been under pressure following a sharp rise in bond yields, which has led investors to dump riskier assets. This sentiment was exacerbated by stronger-than-expected US jobs data, which has curtailed expectations of further interest rate cuts by the Federal Reserve. As a result, Ethereum has experienced a substantial liquidation event, with $171.50 million worth of traders' positions being liquidated, primarily affecting those holding long positions. This has contributed to Ethereum's price decline as it failed to maintain crucial support levels.
Additionally, Ethereum's internal market dynamics have also played a role in today's price movement. The network has seen an increase in its supply, reversing the deflationary environment it experienced post-Merger, which has added to the bearish sentiment. The rise in Ethereum's supply, coupled with lower demand, has fueled concerns about the asset's price trajectory. Furthermore, Ethereum's exchange-traded funds have experienced large outflows, and exchange balances have risen, indicating that investors are moving their tokens to centralized exchanges, often a precursor to selling.
Ethereum's price has dropped by 7.65% today, currently trading at $3,015.83, after reaching a high of $3,329.07 earlier in the day.