Ethereum, the second-largest cryptocurrency after Bitcoin, has witnessed a significant price fluctuation, dipping below the support level of $3000 amid uncertainty in the market. In January, the US approved Bitcoin ETFs, stoking increased interest in the crypto market and sparking a surge in Ethereum’s price when companies submitted filings to offer spot ETH ETFs through the Securities and Exchange Commission (SEC). However, the momentum seems to have faded as Ethereum’s price recently took a tumble.
Following Bitcoin reaching a new all-time high of $73,837, Ethereum’s price also escalated to $4,091. Yet, this peak was followed by a sharp decline. As of the last 24 hours, Bitcoin’s price decreased by 3.5%, landing at $60,715. Ethereum faced a harsher blow, dropping 5.6% to $2,984. Despite the price slide, Ethereum’s trading volume surged 8%, suggesting heightened market activity. Currently, the market cap of Ethereum stands at $361 billion.
The current downward pressure targeting Ethereum could drive the price down further, possibly reaching lows of $2,800 or even $2,500. The cryptocurrency is now trading below several vital bull market indicators, which points to the potential for more downside in the near term. Amidst this volatile environment, the eyes of investors are fixated on the SEC, as the US regulatory body’s decision on whether Ethereum qualifies as a security or a cryptocurrency remains unclear.
The SEC’s ongoing investigation, dubbed “Ethereum 2.0,” aims to determine the asset’s official classification. This decision bears hefty implications for Ethereum’s status in the industry and could either bolster or hamper its market position. The crucial nature of this determination is reflected in the anticipation surrounding the approval of spot Ethereum ETFs—a potentially market-moving event.
The repercussions of the SEC’s investigation could have far-reaching impacts on Ethereum’s future. If the regulatory authority sides favorably by not classifying Ethereum as a security, the likelihood of spot ETH ETFs coming to fruition would increase. Such a development holds the potential to drive Ethereum’s price upward, potentially surpassing its recent peak. As investors and the crypto community await decisive actions from the SEC, the market continues to exhibit signs of both anticipation and anxiety. The question on everyone’s mind is whether the Ethereum price could indeed hit the speculative milestone of $10,000, should the SEC change its tune.
