Ethereum's recent price decline is influenced by a mix of market dynamics and external factors. Despite bullish sentiment and significant investments from entities like World Liberty Financial, Ethereum has faced downward pressure. The approval of Bitwise's Ethereum ETF by the SEC initially sparked interest, but some investors have since taken profits, contributing to the decline. Geopolitical tensions, including potential tariffs from the Trump administration, have also fostered a risk-off sentiment. Additionally, technical factors have played a role, with Ethereum struggling to maintain momentum above key resistance levels, leading to a pullback. On-chain data indicates increased whale accumulation, but this has not been sufficient to counteract the selling pressure from short-term traders amid broader market uncertainties.
The Volatility Shares Trust 2x Ether ETF (ETHU) rose 3.81% to $7.08 as of 3:40 PM on Saturday, February 1.