Key Points
- Ethereum’s spot ETF rejection rumors lead to increased cynicism on social media.
- Despite the negative chatter, Ethereum’s price, network growth, and velocity remain steady.
Ethereum’s Spot ETF Rejection Rumors
Social media has seen a rise in skepticism surrounding Ethereum due to the anticipated rejection of Ethereum’s spot ETF.
The price of Ethereum (ETH) has been hovering between $3,100 to $3,200 following its recent dip.
Social Activity and Market Sentiments
The social activity around Ethereum has grown, but not all discussions have been positive.
Data from Santiment shows that traders are focusing on reports suggesting the SEC might reject proposals for spot Ethereum ETFs in May.
Many believe the cryptocurrency’s value surge since mid-October is due to the positive sentiment following the approval of spot Bitcoin ETFs in January.
Yet, there are suggestions that the SEC may not be prepared to approve other assets at this time.
Historical data often shows that prices move against popular expectations.
Increasing fear, uncertainty, and doubt (FUD) due to trader impatience could potentially benefit non-Bitcoin assets.
There’s been a notable rise in bearish sentiments among traders, as most assets have considerably retraced since Bitcoin’s all-time high on April 14th.
This suggests a higher likelihood of relief bounces occurring in the next week.
An unexpected approval or a softened stance could initially boost Ethereum’s value, but the fear of missing out among overly eager traders may lead to a mid-term drop.
This could provide opportunities for large holders to lower prices.
Historically, if the mainstream sentiment is selling the rumor, there tends to be a justification for buying the news.
Ethereum’s Current Trading Status
At the time of writing, ETH was trading at $3,151.30, a 0.35% drop in the last 24 hours.
The volume at which it was trading had also fallen by 4.04% during the same period.
The network growth had moved sideways over the last few days, suggesting that new addresses weren’t showing particular interest in ETH.
The velocity at which ETH was trading was also moving sideways, indicating that the frequency at which ETH was being traded had remained stagnant.
The sideways movement of network growth and velocity suggests that there may not be any significant fluctuations in price in the near short term for ETH.
