Ethereum's price has been under pressure today, primarily due to significant sell-offs by large holders, known as whales, and a general decline in market inflows. According to recent data, Ethereum whales have been offloading their holdings at a loss, with one entity selling 10,070 ETH for $33 million DAI, incurring a $1 million loss. This selling pressure is compounded by the fact that Ethereum's supply is nearing pre-merge levels, increasing by 45,000 ETH monthly, which has contributed to the bearish sentiment. Additionally, the broader crypto market has seen a sharp drop in inflows, with capital investments plummeting by more than 56% over the past month, further indicating a cooling off period for digital assets.
The emergence of new digital coins like XYZVerse, which is gaining attention with forecasts of massive returns, has also diverted investor interest away from established cryptocurrencies like Ethereum. This shift in focus, coupled with the recent outflows from Ethereum ETFs, has added to the downward pressure on ETH's price. The net outflow from Ethereum ETFs reached $185.89 million in the first week of January, representing a significant portion of the total net worth of major Ethereum spot ETFs. This movement suggests that investors are reallocating their funds, possibly towards other altcoins or emerging projects.
Ethereum's price has dropped by 3.18% today, reaching a low of $3,161.86.