Ethereum (ETH) prices have been downward since the start of the week, with the second-largest cryptocurrency failing to latch onto Bitcoin’s (BTC) resurgence.
According to on-chain data, ETH’s outlook appears grim, with the asset failing to break from the $3,300 resistant level. Presently, ETH trades at the $3,155 mark, but technical analysts are pointing to a bear breakout formation on the charts.
Over the last 24 hours, losses have stood at just under 1% as enthusiasts watch with bated breath the direction of prices for the asset. As bulls and bears prepare for a showdown in the coming days, the path of least resistance is a downward price movement.
In the event that bears have the upper hand, prices are expected to slump below the $3,000 mark, matching the expectation of short sellers. With prices of sub-$3,000, a new wave of investments could pour into the asset, catalyzing a new price rally with traders urged to brace for impact in the short term.
For now, 24-hour trading volume is pegged at $13 billion, and an increase in activity is often construed as an attempt to reject bearish sentiments.
Bulls are banking on a swathe of positives to wrest a measure of control for themselves, citing the rising levels of interest in Ethereum and its layer 2 solutions. On-chain data indicates that over 10 million wallets interact with the Ethereum base layer and its L2 platforms each week, a strong growth indicator.
Cathie Wood of Ark Invest’s recent comments concerning Ethereum have left enthusiasts brimming with optimism. In mid-April, Ark Invest held its Big Ideas event, during which the firm’s CEO asserted that Ethereum could clinch a market capitalization of $20 trillion by 2032, giving it a unit price of $166,000 at the turn of the decade.
Although Woods’ predictions are far off into the future, the claims bumped up ETH price in the near term, cancelling out previous losses amid a correction.
Grim sentiments from the SEC
ETH’s price buckled under the weight of a Reuters report hinting at the US Securities and Exchange Commission’s wholesale rejection of spot ether ETFs.
According to the report, the SEC will withhold its approvals for ETF applications from VanEck and ARK Investment Management. Unnamed sources cite the regulator’s stance in recent meetings with both issuers.
According to the sources, the SEC failed to indicate areas of concern with their applications, opting for a laid approach, which pundits say could be construed as a potential rejection.
“It seems more likely that approval will be delayed until later in 2024, or longer,” said one expert. “The regulatory picture still seems cloudy.”
