The iShares Ethereum Trust ETF (ETHA) experienced a sharp decline of 6.50% during Monday's trading session, as the cryptocurrency market faced significant downward pressure. This substantial drop comes in the wake of a broader selloff in Ether and Ether-linked assets, intensifying concerns among crypto investors.

The primary catalyst for this downturn appears to be the falling price of Ether, the second-largest cryptocurrency by market capitalization. Reports indicate that Ether dropped by approximately 3.8% in early trading, triggering a ripple effect across related financial instruments and companies. This decline in Ether's value has had a direct impact on ETHA, which tracks the performance of Ethereum.

Adding to the market turbulence, the cryptocurrency space experienced a "flash crash" over the weekend, erasing gains made following Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium. Bitcoin, the leading cryptocurrency, saw a significant pullback after a large holder reportedly offloaded 24,000 bitcoin, sparking forced liquidations throughout the broader market. This event has contributed to increased volatility and negative sentiment across the entire crypto ecosystem, further pressuring Ethereum-linked assets like ETHA.