Key Points
- Spot ETH ETF issuers are still awaiting feedback from the SEC on their S-1 filings.
- Ethereum’s price has been under pressure due to increased selling.
The Securities and Exchange Commission (SEC) has yet to provide feedback on the S-1 filings of prospective spot Ethereum (ETH) exchange-traded-fund (ETF) issuers. These filings were submitted on May 31.
It was anticipated that the SEC would respond to these filings by June 7. However, none of the eight issuers whose applications were approved on May 23 have received any feedback yet.
Waiting for SEC Approval
SEC Chairman Gary Gensler stated in a recent CNBC interview that the approval of the S-1 forms could take some time. The lack of feedback from the SEC has contributed to the increased selling pressure on ETH.
As of the time of writing, ETH was valued at $3,539. Data from CoinMarketCap shows a nearly 10% decrease in the value of the leading altcoin over the past week.
Declining Demand for Ethereum
The drop in ETH’s price can be attributed to a decrease in new demand for the altcoin. Key momentum indicators such as the Relative Strength Index (RSI) and the Money Flow Index (MFI) are below their respective center lines, indicating an increase in selling pressure.
The Chaikin Money Flow (CMF), which measures how money flows in and out of a market, is also in a downtrend. A negative CMF value signifies market weakness and suggests capital outflow and a bearish bias toward an asset.
Likewise, the negative values of ETH’s Elder-Ray Index, which measures the relationship between the strength of buyers and sellers in the market, confirm the bearish bias toward the altcoin.
If the selling momentum continues to increase, the price of ETH could potentially drop below the $3500 mark to trade at around $3403. Conversely, if the bearish sentiment is invalidated and bullish sentiment returns, ETH’s price could rally toward $3610.
