NEWSLETTER
ethereum remains under immense selling pressure, declining more than 30% from March 2024 highs. With prices recently falling below $3,000 and sellers doubling down on their profits, there could be no respite for bullish buyers in the next sessions.
The analyst expects a further drop to $2,700
Carrying x, an analyst twitter.com/IamCryptoWolf/status/1790318385844076714″ target=”_blank” rel=”noopener nofollow”>grades that the currency remains bearish and moves within a descending wedge. The trader predicts that eth will continue to fall below the immediate support levels.
In a post, the trader predicts a possible “washout” for eth that would likely see the coin fall below $2,700. The analyst added that despite the prevailing fear, the overall structure of ethereum price action remains unchanged.
The arrangement of ethereum candles on the daily chart shows that ethereum prices are inside a bearish breakout formation. After the heavy losses in mid-April, buyers have not yet recovered the losses.
Consequently, unless there is strong momentum above $3,300 and the falling wedge, the chances of further seller pressure remain high. In the current formation, ethereum has strong support at $2,800. If there is a “washout,” as the analyst says, eth may fall below $2,700 towards $2,600 and $2,200, two of the immediate support levels.
Prospects for ethereum Spot ETFs Dim
Adding fuel to the bearish fire is the likelihood that the U.S. Securities and Exchange Commission (SEC) could reject approval of ethereum exchange-traded funds (ETFs) this month. This speculation stems from analysts noting that the commission could classify ethereum as a security, derailing the ETF's approval.
A financial lawyer in x twitter.com/SGJohnsson/status/1790219759142744195″ target=”_blank” rel=”noopener nofollow”>confirmed that the US SEC is considering classifying eth as a security in its upcoming spot ETF decisions. Unlike bitcoin, whose spot and futures ETFs were approved without such scrutiny, eth faces this additional hurdle.
If the commission led by Gary Gensler were to consider the security of eth, there would be dire consequences. While all spot ETF applications could be denied, there would be more. As part of the terms and conditions of Grayscale's ethereum trusts, ETHE, if the United States SEC classifies eth as a security, all ETHE will be eth/ethe_q3-2021_10q_as-filed.pdf” target=”_blank” rel=”noopener nofollow”>liquidated
In late April, Consensys, led by ethereum co-founder Joseph Lubin, said they are suing the US SEC to protect the broader crypto ecosystem. By threatening to classify eth as a security, ConsenSys said the regulator would “jeopardize the United States' ability to use ethereum and similar blockchain technology.”
Featured image from Canva, TradingView chart
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