Ethereum's price is experiencing downward pressure due to substantial sell-offs by large holders, known as whales, and a notable decline in market inflows. Recent data indicates that 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 exacerbated by Ethereum's supply 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 Volatility Shares Trust 2x Ether ETF (ETHU) experienced a significant decline, dropping 6.92% to $6.73 at 4:40 AM on Monday, January 13.