The recent launch of a memecoin linked to Donald Trump has created significant market volatility, diverting attention from Ethereum's previously bullish sentiment. This unexpected development has led to a surge in trading volume and market capitalization for the memecoin, overshadowing Ethereum's positive outlook driven by derivatives traders and the anticipated Pectra mainnet upgrade. The uncertainty surrounding the memecoin's legitimacy has contributed to a broader market sell-off, negatively impacting Ethereum's price. Despite increased institutional capital inflow and rising activity on Layer 2 protocols, Ethereum's price has been affected by the market's shift in focus.
The Volatility Shares Trust 2x Ether ETF (ETHU) is currently priced at $8.17 as of 5:00 AM on Saturday, January 18.