The ongoing trade tensions between the U.S. and China have significantly impacted Ethereum's price, as fresh tariffs have led to increased market volatility and a sell-off in the crypto markets. Ethereum, a key player in decentralized finance, is particularly vulnerable to these macroeconomic shocks. Analysts point out that the token's exposure to leveraged trading dynamics has intensified its decline. Additionally, Ethereum's recent network adjustment, which increased the gas limit to over 30 million units, has raised concerns about the potential impact on network decentralization and security, further contributing to its price fluctuations.
The Volatility Shares Trust 2x Ether ETF (ETHU) has experienced a notable increase, rising 8.41% to $4.90 as of 10:00 AM on Tuesday, February 4.