Here's Why Ethereum Sank More than 4% Today

Core Insights - The cryptocurrency sector is experiencing broad market weakness, impacting valuations, with Ethereum (ETH) declining 4.7% in the past 24 hours, returning to the $2,800 range after briefly exceeding $3,000 [1][2] - Despite some positive catalysts, such as JPMorgan's tokenized money market fund and bullish narratives from industry figures, Ethereum's price is not appreciating due to weakening risk sentiment and broader market concerns [4][7] - Liquidation activity has surged, with over $162 million in Ethereum perpetual futures contracts liquidated in the past day, indicating increased volatility in the market [5][6] Market Dynamics - The decline in Ethereum's price is occurring amidst strong catalysts that would typically support price increases, highlighting structural weaknesses in the crypto sector [4][6] - Broader macroeconomic concerns, particularly a weaker-than-expected jobs report, are contributing to negative market sentiment and investor caution in the crypto space [6][7] - The shift of on-chain trading activity to the derivatives market is exacerbating price swings, suggesting that future volatility may continue [5][6]