Ethereum Struggles at $3,100 as SEC Delays Spot ETF Decisions
The price of Ethereum (ETH) is facing headwinds, currently hovering around $3,100 after losing nearly 2% in the past 24 hours. This weakness coincides with the US Securities and Exchange Commission (SEC) postponing its decision on several spot Ethereum ETF applications.
SEC Delays Cloud Ethereum ETF Landscape
The SEC has pushed back its decision on the Hashdex Nasdaq Ethereum ETF and the ARK 21Shares Ethereum ETF to late May, dampening hopes for a near-term approval of a spot Ethereum ETF in the US. This delay follows the recent success of several Bitcoin futures ETFs, which some analysts saw as paving the way for similar Ethereum products.
Grayscale, a prominent crypto investment firm, has also recently submitted an updated application for a spot Ethereum ETF, but its fate remains uncertain.
Crypto Market Correction Takes Toll
The broader cryptocurrency market is experiencing a correction, with Ethereum prices down significantly from their highs of over $4,000 last week. This market-wide downturn has resulted in over $670 million in liquidations within the past 24 hours, according to Coinglass data.
Analysts at K33 Research believe that further liquidations of bullish positions could occur, potentially hindering a swift recovery for Ethereum.
Federal Reserve Meeting Looms
Investors are also awaiting the upcoming Federal Open Market Committee (FOMC) meeting this week, where the Fed is expected to maintain current interest rates. This decision, coupled with concerns about inflation and rising unemployment, could further impact risk assets like Ethereum.
BlackRock Eyes Ethereum Despite Market Downturn
Interestingly, despite the current market climate, investment giant BlackRock is reportedly looking to offer Ethereum-based products to its clients. On-chain data suggests BlackRock recently tokenized $100 million on the Ethereum network, demonstrating potential long-term bullishness on Ethereum.
ETH/USD Technical Analysis: Bears in Control
Ethereum’s price is currently trading below key support levels, including the $3,350 mark and the 100-hour moving average. Immediate resistance sits around $3,280, with a significant hurdle at $3,350. Overcoming this level will be crucial for any bullish momentum.
Breaking below the critical $3,000 support zone could trigger a further decline towards $2,950.
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