The price of Ethereum (ETH) is being dragged lower by the current selloff in Bitcoin (BTC) that has come after spot cryptocurrency exchange-traded funds (ETFs) were approved in the U.S.
In the last five trading sessions, the price of Ethereum has declined 10%, bringing its year-to-date loss to 5%.
Ethereum, the second-largest cryptocurrency by market capitalization, is currently trading at $2,200 U.S., down from more than $2,500 U.S. at the start of January.
The slide in Ethereum comes as the entire crypto market declines along with Bitcoin, whose price has fallen 20% in recent weeks, dropping from $49,000 U.S. to as low as $38,000 U.S.
Bitcoin is currently trading right around the $40,000 U.S. mark.
The selloff resulted after regulators in the U.S. approved trading in spot Bitcoin ETFs on Jan. 10. Cryptocurrencies had rallied in the lead-up to the ETF approvals but have since sold off.
At one point, Ethereum’s price fell 6% in 24 hours on Jan. 22 before recovering.
Beyond the decline in Bitcoin, Ethereum’s price is also being impacted by news that the
Ethereum Foundation, a nonprofit that’s focused on keeping the Ethereum network operating, sold $1.6 million U.S. worth of the digital asset.
Additionally, Ethereum has another upgrade underway. The “Dencun upgrade” began in recent days, adding to the price volatility.
Despite the current slump, the price of Ethereum is still up 44% over the past 12 months.
