Ethereum faces a critical test amid SEC’s pending approval 

Ethereum’s price fell below the $3K mark over the weekend as sentiments around the super altcoin became cloudier. Large buyers or sellers, however, are typically the center of attention because of their significant impact on price fluctuations. On May 10, Ark Invest and 21 Shares revised their proposal for an Ethereum ETF that included staking ambitions. 

A provision stating that the sponsor, 21 Shares, planned to stake a portion of the fund’s assets through third-party providers was added to the businesses’ prior filing on February 7. 

21 Shares intended to regard profits as income from the fund and anticipated receiving ETH as a staking payment. The document recognized the potential hazards associated with stakings, such as losses due to penalties being slashed and cash becoming inaccessible. 

The relevant part is removed in the most recent file. It continues to make more general remarks about possible losses to other validators because of staking and how it affects the price of ETH.

Within the following two weeks, the SEC is anticipated to either approve or reject some spot Ethereum applications. The regulator will decide on VanEck’s spot Ethereum application on May 23 and then on May 24 on behalf of Ark and 21Shares. But the government is supposed to make decisions on all comparable, rival applications in the same periodicity.

However, statistics for Ethereum revealed a positive rating, indicating bullish confidence in the direction of the price trend. If this indicator stays in the same place over the next few days, ETH could rally towards the $3,200 mark.

If the current situation is not maintained or improved upon, the altcoin’s price may drop below $2,800.  Investor perception of ETH has shifted because of the coin’s lackluster price performance.  

Ethereum may aim to move up to $3,500. This time, we looked at the dormant circulation in addition to this statistic. As per Santiment’s on-chain data, the 90-day dormant circulation had decreased to 9246. Coins that have not moved in a long time will likely switch wallets if the metric rises. This occasionally indicates that veterans are selling.