Ethereum Price Analysis 4/25: Will ETH ETF Denial Jitters Trigger Sell-Off To $2,500?

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As someone who closely follows the cryptocurrency market and has experience in analyzing Ethereum price trends, I find the current state of the market concerning. The headwinds facing Bitcoin after its halving event have affected Ethereum and other altcoins as well, leading to a bearish outlook across the board.

The Ethereum price analysis indicates that the cryptocurrency market is experiencing turbulence following Bitcoin‘s halving event, which was expected to influence Bitcoin’s supply substantially. Similarly, Ethereum and other altcoins show signs of vulnerability as investors exhibit uncertainty by offloading their assets. The 5.7% drop in Ethereum value mirrors the 4.5% decline in Bitcoin, reflecting the overall pessimistic sentiment within the market.

During US business hours on Thursday, Ethereum stays around $3,105. The substantial increase in trading volume by 32%, coupled with a price decrease, signifies decreased risk tolerance and fewer investors looking to close their positions. Additionally, the 5% reduction in Ethereum’s market capitalization to approximately $382 billion reflects the volatile state of the crypto market.

The SEC Set To Deny ETH ETF – Issuers Reckon

In the first quarter, there was an increase in hope for an Ethereum Exchange-traded fund (ETF) as the Securities and Exchange Commission (SEC) granted approval for several Bitcoin ETFs.

Multiple prospective ETH ETF providers have applied for regulatory approval in the US to launch their products. The optimism surrounding Ethereum has grown noticeably, as analysts predict a comparable effect on ETH’s price as the Bitcoin ETF had on BTC‘s price, which reached an unprecedented peak of $73,837 in March according to CoinGecko statistics.

Based on recent reports from Reuters, I’ve observed that the Securities and Exchange Commission (SEC) may choose to reject Ethereum Exchange-Traded Funds (ETFs). The sources mentioned in the report include representatives from ETF issuers and other related companies. They indicated that the SEC has shown no interest in scheduling meetings with them, suggesting a reluctance on the regulator’s part to engage in the process for approving these funds.

Nine different companies, such as VanEck and ARK Investment Management, have submitted Ethereum ETF proposals to the SEC up to this point. These Exchange-Traded Funds (ETFs) aim to mirror the value of Ethereum by tracking its price in real time, a concept referred to as Spot ETFs.

The SEC is expected to decide on the first proposals filed by VanEck and ARK Invest by May 23, 2024.

From my perspective, according to the report, my observations reveal that interactions between your company and the Securities and Exchange Commission (SEC) have largely consisted of one-sided communications without much substance. In stark contrast, prior to granting approval for Bitcoin ETFs in January, the SEC held numerous meaningful meetings with issuers. During these sessions, they delved into the intricacies of the proposed investment offers.

With the current imbalance in dialogue, proponents of Ethereum ETFs anticipate rejection from regulatory bodies when submitting their applications.

I’ve noticed that Bitcoin ETF launches have been a significant factor in driving up bitcoin prices. However, the absence of a spot Ethereum ETF could hinder our progress towards hitting new record highs. Furthermore, the crypto market is currently fragile, and any bearish news could intensify selling pressures, potentially leading to a crash down to $2,500.

Ethereum Price Analysis As More Declines Linger

When the Money Flow Index (MFI) for Ethereum falls below the 40-threshold, it underscores a bearish trend. This signifies that more funds are leaving the Ethereum market than entering it, adding to downward pressure on its price, which is currently 24% lower than its all-time high of $4,089. Additionally, Ethereum remains below two significant bull market indicators: the 20-day Exponential Moving Average (EMA) and the 50-day EMA, as represented by the blue and red lines on the chart.

Ethereum Price Analysis 4/25: Will ETH ETF Denial Jitters Trigger Sell-Off To $2,500?

Observing Ethereum’s price action, if the day’s close is below the $3,100 resistance/support level, the likelihood of a sudden drop beneath $3,000 becomes more pronounced. The 200-day Exponential Moving Average (EMA), represented by the purple line on the chart, might act as a cushion at around $2,740, potentially thwarting further declines towards $2,500.

Despite the current correction, Ethereum’s price could become profitable if it picks up speed from the developing falling wedge pattern. Once the price breaks above the upper trend line, traders might be inspired to purchase ETH in anticipation of a trend reversal that could lead to the $4,000 mark.

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2024-04-25 16:40