Ethereum's price has experienced a significant drop today, largely due to the confusion and market volatility surrounding the launch of an "official" memecoin linked to Donald Trump. The memecoin, which was announced from Trump's verified social media accounts, has caused a stir in the crypto community, leading to a massive trading volume and market capitalization within hours. This unexpected development has overshadowed Ethereum's recent bullish sentiment, as traders and investors shift their focus to the potential implications of this new token on the broader crypto market.
Despite the recent bullish outlook from derivatives traders and the anticipation of Ethereum's Pectra mainnet upgrade, the market's attention has been diverted by the memecoin frenzy. The memecoin's rapid rise and the uncertainty surrounding its legitimacy have contributed to a broader market sell-off, affecting Ethereum's price negatively. This comes at a time when Ethereum was showing signs of strength, with increased institutional capital inflow and rising activity on Layer 2 protocols.
Ethereum's price has fallen by 6.07% today, currently trading at $3,263.24, after reaching a high of $3,489.33 earlier in the day.