Ethereum remains under significant selling pressure and is down more than 30% from its March 2024 highs. With the price recently dropping below $3,000 and sellers doubling down, there will be no reprieve for optimistic buyers in the coming sessions.
Analysts expect another 'washout' to hit $2,700
An analyst talks about X Note The coin is still bearish and is moving within a descending wedge. The trader expects ETH to remain below the immediate support level.
In his post, the trader predicted a possible “washout” that would likely see ETH drop below $2,700. The analyst added that despite the prevailing fears, the overall structure of Ethereum's price movements has not changed.
The Ethereum candlestick placement on the daily chart shows that Ethereum price is within a bearish breakout formation. After heavy losses in mid-April, buyers have yet to recoup their losses.
Therefore, unless there is a strong push up and down wedge above $3,300, the likelihood of sellers pushing further remains high. In its current formation, Ethereum has strong support at $2,800. If there is a “washout” as analysts call it, ETH could fall below $2,700 and towards the immediate support levels of $2,600 and $2,200.
Spot Ethereum ETF outlook darkens
Adding fuel to the bearish fire, the U.S. Securities and Exchange Commission (SEC) is increasingly likely to deny approval for a spot Ethereum exchange-traded fund (ETF) this month. The speculation stems from analysts pointing out that the commission could classify Ethereum as a security, which could prevent the ETF from being approved.
Financial lawyer regarding X Confirmed The US SEC is reportedly considering classifying ETH as a security in its future spot ETF decisions. Unlike Bitcoin, whose spot and futures ETFs were approved without such scrutiny, ETH faces this additional hurdle.
If a committee led by Gary Gensler decides that ETH is safe, there will be dire consequences. It is possible that all spot ETF applications will be denied, but it is possible that many more will be denied. As part of Grayscale's Ethereum Trust, ETHE, Terms of Use, if the U.S. SEC classifies ETH as a security, all ETHE liquidatedand the trust was terminated.
In late April, ConsenSys, led by Ethereum co-founder Joseph Rubin, announced that it would sue the US SEC to protect the broader cryptocurrency ecosystem. ConsenSys said that by threatening to classify ETH as a security, regulators are “putting the United States' ability to utilize Ethereum and similar blockchain technologies at risk.”
Featured image from Canva, chart from TradingView
