Ethereum's price has been under pressure today, driven by a combination of factors affecting the broader cryptocurrency market. A significant rise in bond yields has led investors to offload riskier assets, including cryptocurrencies. This sentiment was exacerbated by stronger-than-expected U.S. jobs data, which has reduced the likelihood of imminent Federal Reserve interest rate cuts. As a result, Ethereum, along with other major cryptocurrencies, has experienced a sell-off. Alex Kuptsikevich, chief market analyst at FxPro, noted, “The start of the new year has not been easy for the crypto market,” highlighting the challenges faced by digital assets in the current economic climate.
Additionally, Ethereum has been impacted by internal market dynamics, such as large outflows from its exchange-traded funds and increased balances on centralized exchanges. This suggests that investors are moving their holdings to exchanges, potentially preparing to sell. The recent exploit of the UniLend Finance protocol on Ethereum, resulting in a loss of approximately $197,000, has also contributed to the negative sentiment surrounding the cryptocurrency. These factors, combined with a general decline in crypto market inflows, have put downward pressure on Ethereum's price.
Ethereum's price has dropped by 6.49% today, reaching a low of $3,053.76.