Ethereum's price has been under significant pressure due to a confluence of macroeconomic and market-specific factors. The rise in bond yields has prompted investors to move away from riskier assets, including cryptocurrencies, following stronger-than-expected U.S. jobs data that diminished the likelihood of imminent Federal Reserve interest rate cuts. This broader market sentiment has been compounded by internal dynamics within the Ethereum market, such as substantial outflows from exchange-traded funds and increased balances on centralized exchanges, indicating potential sell-offs. Additionally, the recent exploit of the UniLend Finance protocol, resulting in a loss of approximately $197,000, has further dampened investor sentiment.
The Volatility Shares Trust 2x Ether ETF (ETHU) experienced a sharp decline, dropping 12.45% to $6.33 at 7:20 AM on Monday, January 13.