Key Points
- Expectations for an Ethereum spot ETF approval are low due to the SEC’s silence and Grayscale’s withdrawal of their application.
- Ethereum’s market performance is lagging, with a bearish sentiment among traders.
Gary Gensler’s SEC is known for its slow approval process for crypto products, a trend that has been slightly alleviated with the approval of eleven spot Bitcoin ETFs this year.
Ethereum ETF Uncertainty
The crypto community has been eagerly awaiting the approval of an Ethereum spot ETF, especially since Ethereum is seen as Gensler’s preferred cryptocurrency. However, no approval has been given, and the SEC has remained notably silent on the matter. Adding to the uncertainty, Grayscale recently withdrew their application for an Ethereum ETF without disclosing their reasons.
This lack of engagement from the SEC and Grayscale’s unexpected withdrawal have led to speculation that an Ethereum ETF approval may not be imminent. This speculation is reflected in the market, with outflows totaling $14 million last week, according to CoinShares data.
Ethereum Market Performance
Ethereum’s market performance hasn’t been impressive recently. Despite modest gains in other top ten cryptocurrencies, Ethereum’s price has remained stagnant. At the time of writing, it is significantly below its critical support level of $3,000.
Data from Santiment shows a bearish sentiment among Ethereum traders, with trading volumes and liquidations being low. This is not due to investor caution, but rather a result of boredom due to Ethereum’s lack of major price movements this year.
A look at the ETH/USDt pair on TradingView reveals extreme volatility with numerous peaks and valleys. The highest peak nears the $3,340 level, indicating strong buying interest, while the lowest is close to $2,840, where selling pressure increases. The price has repeatedly tested the $2,900 support level over the past month, demonstrating resilience at this level.
Recently, the price showed a slight upward trend around $2,968, suggesting a possible recovery or consolidation phase. However, this trend did not hold, and Ethereum was worth $2,958 at the time of writing. Given this context, the short-term prediction for Ethereum leans towards a continuation of bearish trends.
