Ethereum's price movement today has been significantly influenced by macroeconomic factors and market sentiment. The stronger-than-expected US jobs data released last Friday has led to a spike in bond yields, causing investors to shy away from riskier assets like cryptocurrencies. This has resulted in a broad sell-off in the crypto market, with Ethereum experiencing a notable decline. "The start of the new year has not been easy for the crypto market," said Alex Kuptsikevich, chief market analyst at FxPro, highlighting the challenges faced by digital assets amid shifting economic conditions.
Adding to the downward pressure on Ethereum is the emergence of XYZVerse, a new digital coin that is capturing investor attention with its potential for massive returns. This has diverted some interest away from established cryptocurrencies like Ethereum. Furthermore, Ethereum has faced substantial liquidations, with $171.50 million worth of traders' positions being liquidated, primarily from long positions. This liquidation was triggered when Ethereum failed to maintain crucial support levels, exacerbating the price decline.
Ethereum's price has dropped by 6.49% today, currently trading at $3,053.57, after reaching a high of $3,329.07 earlier in the day.