Ethereum, currently the largest altcoin by market value, is the most robust smart contract platform. It reaches massive users with DeFi applications that tokenize real-world assets of banks. However, while higher peaks in ETH price are expected in the coming months, the anticipated scenario does not always materialize.
Ethereum and the Month of May
With just hours left until April ends, we are entering the critical month of May for Ethereum. The final decision dates for the ETH ETF applications by VanEck and Ark&21Shares are set for May 23. As the month ends, the SEC will announce its decisions on these two ETFs, as well as the fate of other pending applications.
Contrary to the situation with spot BTC ETFs in January, we might see applications that have not yet reached their decision date being rejected. Almost everyone is nearly certain about the rejection. Bloomberg experts have revised their early-year predictions negatively. Many believe that the technical decision of rejection has already been made by the Ethereum Foundation, thus nullifying this year’s most significant price catalyst for Ether.
As we can see from the ETH price, the possibility of rejection is already factored in, and ETH is finding buyers at $3,260. However, if there is a surprise and the SEC shocks everyone, ETH could rapidly climb above $4,000. Considering what the SEC did during the BTC ETF approval process (fake announcements from the official X account, Gensler’s reluctant approval announcements, etc.), is such a scenario likely? It seems not very likely.
The SEC and the Nightmare in Crypto
The implications by the SEC that Ethereum’s new model could centralize control and the legal steps it has taken form the basis of the ETF rejection expectation. The Wells Notice sent to Consensys, the largest company in the Ethereum ecosystem, the Uniswap notice, and documents requested concerning the relationship between the Ethereum Foundation and crypto companies indicate that the SEC has already launched its attack.
The desire of the SEC to label Ethereum as a security, according to a Consensys spokesperson, would mean the end of all these innovations, and the rest of the world would surpass us. “This is not something we can tolerate. It’s not something the rest of the industry or anyone should tolerate because this issue is bigger than just crypto and blockchain. It’s an attack on the technology itself,” says the spokesperson.
