Cryptocurrency markets have experienced a period of turmoil in recent days as Ethereum and Bitcoin prices faced volatility and traders struggled with large-scale liquidations.
Analysts remain skeptical about the prospects for a Spot Ethereum ETF to be approved this year as the market braces for the release of important US inflation data.
TLDR
- Ethereum price failed to break through the resistance level at $3,725, cutting into gains and consolidating support near $3,475.
- Bitcoin and Ethereum fall hours ahead of new US inflation statistics on April 10th
- Long Ethereum traders faced a $59 million liquidation on April 9 as the price briefly fell to $3,470.
- Analysts skeptical that SEC will approve Spot Ethereum ETF this year
- Bitcoin volatility increases ahead of April 20th halving event
Ethereum, the second-largest cryptocurrency by market capitalization, failed to break through the $3,725 resistance level. After reaching a high of $3,726, the price faced a rejection, pared the gains and consolidated around the $3,475 support zone.[1] This price action triggered a surge in long-term liquidations, forcing traders who had bet in favor of price increases to exit their positions.
Ethereum long-term liquidations reached a weekly high of $59 million on April 9, while short-term liquidations totaled less than $7 million, according to Coinglass data. The temporary price drop to around $3,470 spurred a surge in long-term liquidations as traders were forced to liquidate due to lack of funds to maintain their positions.
The volatility in the crypto market comes as investors await new U.S. inflation data to be released on April 10 at 8:30 a.m. ET. Bitcoin and Ethereum both fell in the hours leading up to the release of this important economic report, with Bitcoin trading at just under $69,000 and Ethereum trading at just over $3,500. .
Bitcoin and Ethereum are up compared to the start of last week, with Bitcoin up 4.3% and Ethereum up 6.3% over the past seven days, but the market remains tingly. Bitcoin volatility is rising ahead of the much-anticipated halving event on April 20th, when the rewards paid to miners will be reduced from 6.25 BTC to 3.125 BTC.
Amid this market turmoil, analysts have expressed skepticism about the prospects for Spot Ethereum ETFs to be approved by the U.S. Securities and Exchange Commission (SEC) this year. VanEck CEO Jan van Eck said this at the crypto event “Paris Blockchain Week.”
“We were the first company in the U.S. to apply for Ethereum, and we [Ark Invest CEO] I think Cathie Wood is probably the first May candidate to be rejected. ”
Jean-Marie Mognetti, CEO of CoinShares, which recently acquired the Valkyrie Bitcoin Fund, echoed this sentiment, saying, “I don’t see anything being approved this year.” This skepticism stems from concerns about the regulatory treatment of proof-of-stake cryptocurrencies like Ethereum.
As the market navigates these challenges, traders and investors will be closely monitoring the impact of US inflation data and the upcoming Bitcoin halving event.
While the market selloff may provide an attractive entry point for some, the volatility and uncertainty surrounding regulatory approvals further complicates the investment environment.
