Ethereum pricing holds onto crucial support in the face of an SEC investigation and fluctuating market mood.
The price of ether experienced a large decline on March 12 after running against strong resistance above $4,100.
Due to Ether’s 9% weekly loss and poor performance in comparison to the larger cryptocurrency market, traders are wondering if the $3,200 support level will hold.
For comparison, within the same period, the total market capitalization of cryptocurrencies decreased by 2.5%.
You may also like: BetChain Casino Review
The possible approval of an Ethereum spot exchange-traded fund (ETF) is still a major catalyst, in our positive opinion. A final verdict is expected by May 23.
The matter is currently being reviewed by the United States Securities and Exchange Commission (SEC).
“The possible approval of an Ethereum spot exchange-traded fund (ETF) is still a major catalyst, in our positive opinion. A final verdict is expected by May 23.” – James Seyffart, Senior ETF Analyst at Bloomberg
The goal of the hard fork was to improve layer-2 data processing capabilities and network scalability.
Consequently, most applications on Arbitrum, Optimism, and Base now have substantially lower transaction fees.
The US regulatory landscape is getting more complicated, which adds to the gloomy prognosis for Ether’s mid-term pricing.
On March 20, revealed that the SEC is investigating businesses for potential ties to the Ethereum Foundation in an effort to categorise Ether as a security.
According to reports, the SEC took this step in response to Ethereum’s switch from a proof-of-work to a proof-of-stake network.
Several American businesses were requested to provide financial records and documentation pertaining to their dealings with the Ethereum Foundation.
The 25% skew of ETH options has increased from 0% to 5% since March 21. This indicates a cautious scepticism towards the $3,200 support level.
The skew statistic, on the other hand, has remained in neutral area, offering no indication that pessimistic sentiment has increased, despite an 11% decline in Ether’s price over the course of a week.
Taking a broader view, the Ethereum network continues to lead in terms of deposits, with $94 billion in total value locked (TVL).
The largest asset management in the world, BlackRock, has taken the effort to introduce a tokenized asset fund on Ethereum, further solidifying the network’s popularity.
As a result, there doesn’t seem to be any strong evidence to doubt Ether’s ability to hold its support at $3,200 in the foreseeable future.
Ether’s trajectory towards an optimistic future hinges significantly on the green light for a spot Ether ETF.
As the second-largest cryptocurrency by market capitalization, Ether has established itself as a vital player in the blockchain ecosystem, particularly with the rise of decentralized finance (DeFi) applications and non-fungible tokens (NFTs).
An approved spot Ether ETF would provide institutional and retail investors alike with a regulated, accessible vehicle to gain exposure to the digital asset, potentially unlocking a wave of fresh capital inflows.
This influx could foster greater liquidity and stability within the Ether market, fueling further innovation and development in the broader Ethereum ecosystem.
Moreover, the approval of a spot Ether ETF could serve as a catalyst for mainstream acceptance and adoption of cryptocurrencies.
Ether, with its utility beyond being a mere digital currency, represents a key component of the decentralized internet infrastructure.
By offering investors a familiar investment avenue through ETFs, Ether could garner greater legitimacy in traditional financial circles, paving the way for broader integration into investment portfolios and financial products.
Such mainstream acceptance could lead to increased utility and demand for Ether, driving its price upward and solidifying its position as a cornerstone of the digital economy.
Thus, the approval of a spot Ether ETF has the potential to not only shape Ether’s future trajectory but also to influence the broader landscape of cryptocurrency adoption and innovation.
You may also like: Best Roobet strategy
I trust you find the latest updates from Crypto-betting.org enjoyable.
If you like to know more, follow us on Facebook, Instagram or LinkedIn.
