As a researcher with a background in cryptocurrencies and market analysis, I have been closely monitoring the Ethereum price action and market sentiment. The recent sell-off, which has seen Ethereum drop below $3,000, is a cause for concern, especially given the bearish outlook from some traders.
As a researcher studying the Ethereum market, I can tell you that the cryptocurrency has been experiencing significant selling pressure since March 2024, resulting in a decline of over 30% from its highs. The recent drop in price below $3,000 has only intensified this trend, with sellers increasing their positions. Unfortunately for optimistic buyers, there seems to be no relief in sight as the market continues to trend downward.
Analyst Expects One More “Washout” To $2,700
As a crypto investor, I’ve been keeping an eye on X’s price action, and according to my analysis, it currently looks bearish. The coin is trading within a falling wedge pattern, which indicates a potential continuation of the downtrend. Based on this observation, I anticipate that Ethereum (ETH) may drop further and break through its immediate support levels.
In a recent post, an analyst anticipates a significant drop in ETH‘s value, potentially pushing it below the $2,700 mark. However, they emphasize that Ethereum’s price trend as a whole has not undergone any major shifts.
In simpler terms, the daily Ethereum price chart on the Ethereum network using candlesticks indicates a potential bearish breakdown. After the significant price drops in mid-April, Ethereum’s buyers have failed to recover their losses.
Based on the current market conditions, if Ethereum fails to break above $3,300 resistance strongly and the descending wedge pattern persists, sellers are likely to continue driving down the price. Ethereum currently has solid support at $2,800. However, if there’s a significant sell-off as suggested by the analyst, Ethereum could potentially drop below $2,700 towards the next supports at $2,600 and $2,200.
Prospects Of Spot Ethereum ETFs Dimming
The SEC’s rejection of Ethereum spot ETFs this month is a real possibility, fueled by increasing speculation that the commission may classify Ethereum as a security. This classification could impede ETF approval.
As a crypto investor, I’ve heard from a finance lawyer at X conference that the SEC is deliberating over whether to classify Ethereum (ETH) as a security in their upcoming decisions regarding spot ETFs. Unlike Bitcoin, which has had its spot and futures ETFs approved without such intense examination, ETH investors may need to navigate this extra obstacle.
If the Securities and Exchange Commission (SEC), headed by Gary Gensler, determines that Ethereum is classified as a security, significant repercussions would ensue. This decision could potentially prevent all applications for spot Ethereum exchange-traded funds (ETFs) from being approved. Moreover, investors in Grayscale’s Ethereum trusts, such as ETHE, would face consequences: the liquidation of their holdings and the subsequent closure of the trust.
Around the last week of April, Consensys, headed by Ethereum’s co-founder Joseph Lubin, announced they were filing a lawsuit against the US Securities and Exchange Commission (SEC). The reason being, the SEC’s potential classification of ETH as a security could harm the United States’ capacity to utilize Ethereum and related blockchain technology.
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2024-05-15 03:11