Ethereum's price is experiencing downward pressure due to significant sell-offs by major holders and a decrease in network activity. Long-term holders are offloading their Ethereum holdings, leading to substantial outflows from exchange-traded funds and liquidations. This sell-off has pushed Ethereum's price below key support levels, with market sentiment remaining cautious. Additionally, potential regulatory challenges, such as South Korean authorities considering sanctions against the crypto exchange Upbit, and the anticipation of a potential rate hike by the Bank of Japan, are contributing to the bearish momentum in the cryptocurrency market.
The Volatility Shares Trust 2x Ether ETF (ETHU) has seen a notable decline, dropping 5.93% to $7.46 as of 9:20 AM on Thursday, January 16.