Ethereum Price Analysis: SEC Set to Deny ETH ETF, More Declines Linger
The cryptocurrency market is facing headwinds following the Bitcoin halving event, with Ethereum showing signs of weakness as investors sell off their holdings. Ethereum’s price has dropped by 5.7% alongside Bitcoin’s 4.5% decline, reflecting a bearish outlook across the market.
Currently hovering at $3,105 during US business hours on Thursday, Ethereum’s trading volume has surged by 32% while its market cap has corrected by 5% to $382 billion. This indicates reduced risk appetite and investor willingness to close open positions, highlighting the precarious state of the crypto market.
The optimism for a spot Ethereum Exchange-traded fund (ETF) gained momentum in Q1 after the SEC approved several Bitcoin ETFs. However, the latest report suggests that the SEC may deny Ethereum ETFs, with issuers expressing concerns over the lack of substantive communication with the regulator.
Potential issuers of Ethereum ETFs, including VanEck and ARK Investment Management, are expecting the SEC to deny their applications. This news, coupled with the delicate state of the crypto market, could lead to further selling pressure and trigger a sell-off to $2,500.
Ethereum’s price analysis shows a bearish grip on the token, with the Money Flow Index (MFI) below the 40 mark indicating more money flowing out than into Ethereum markets. If Ethereum price closes below $3,100, a flash drop under $3,000 is likely, with potential support at the 200-day EMA at $2,740.
Despite the current correction, Ethereum price could turn profitable if it gains momentum from a forming falling wedge pattern. A break above the upper trend line could signal a trend reversal towards the $4,000 mark, offering traders an opportunity to buy ETH.
