The Volatility Shares Trust 2x Ether ETF (ETHU) closed down 5.55% at $7.49 on January 16, as Ethereum's price fell 3.81% to $3,318.90 amid significant sell-offs by major holders and increased ETF outflows. Ethereum's decline was exacerbated by $159.4 million in ETF outflows and over $84 million in liquidations within a 24-hour period, pushing its price below key support levels. Market sentiment remains cautious, with long-term holders distributing their tokens and exploring alternative opportunities. Additionally, potential regulatory challenges, such as South Korean authorities considering sanctions against the crypto exchange Upbit, are contributing to the bearish momentum. The anticipation of a potential rate hike by the Bank of Japan is also adding to market unease, as investors brace for possible impacts on crypto momentum.