Ethereum's price has been under pressure due to significant sell-offs by major holders and increased ETF outflows. Long-term holders are distributing their Ethereum tokens, leading to $159.4 million in ETF outflows and over $84 million in liquidations within a 24-hour period. This activity has pushed Ethereum's price below key support levels, with market sentiment remaining cautious as investors explore alternative opportunities. Additionally, World Liberty Financial's recent swap of $10 million worth of Bitcoin for Ethereum, and subsequent transfers to various wallets, including Coinbase Prime, have added to market unease, despite clarifications that these movements were for business purposes.
The Volatility Shares Trust 2x Ether ETF (ETHU) experienced a decline, dropping 4.54% to $7.57 at 7:20 AM on Thursday, January 16.