Ethereum's recent price movement has been shaped by a mix of market sentiment and macroeconomic influences. Despite positive signals such as increased adoption and a rise in active wallets, Ethereum has encountered downward pressure. The Federal Reserve's decision to maintain its key policy rate, following three rate cuts in 2024, has created a cautious market environment. Fed Chair Jerome Powell's comments on renewed inflationary risks have further contributed to this sentiment, leading to a broader market retreat. While February is historically a bullish month for Ethereum, today's market dynamics have overshadowed these positive indicators, as traders remain wary amid broader economic uncertainties.
The Volatility Shares Trust 2x Ether ETF (ETHU) rose 3.81% to $7.08 as of 5:00 PM on Saturday, February 1.