Ethereum, the second-largest cryptocurrency by market capitalization, faces a substantial sell-off at the start of January. This downturn has erased its recent gains, leaving traders anxious. Diverse factors contribute to this sell pressure, including substantial leveraged liquidations and large-scale outflows from exchanges. Investors and analysts are keenly monitoring several indicators that could signal a potential recovery. Understanding the dynamics behind these moves can guide investor strategies. As the market stabilizes, Ethereum’s price action will be crucial for future investment decisions.