Ethereum, the largest altcoin by market value, is currently trading above $3200. The SEC continues to delay decisions on ETF applications. A critical decision date for applications by Ark and 21Shares is approaching on May 23.
Expert Opinions on Ethereum’s Crypto Market
Every time the price drops to $3000, buyers step in, but there’s a weakness in targeting higher levels. The lack of demand above $3200 is limiting ETH price increases. Well-known crypto commentator DeFiSurfer808 says Ethereum is weakening compared to Bitcoin and lacks capital flow for a rally. Moreover, as hopes for an ETF wane, we are not seeing the anticipated demand surge in the first half of 2024.
On April 9, Jan van Eck, chief investment officer at VanEck, commented that the expected approval decision would not come soon. After announcing a likely rejection in May, demand for Ether weakened further.
On the other hand, on April 11, Uniswap, one of the largest DeFi platforms on the Ethereum network, received a notice and learned of the SEC’s intent to sue. This targeted attack on the Ethereum Foundation and the opening of a new battlefront in the DeFi space further dampened buyer interest.
Predictions for Ethereum
The Blockchain Association and the Crypto Freedom Alliance of Texas recently filed a lawsuit claiming that the SEC is trying to suffocate the crypto industry. SEC members Uyeda and Peirce echoed this sentiment. Following a defeat in the Debt Box case, the SEC’s disregard for rules and its negative stance towards crypto have been certified, even leading to criticism from within the agency itself.
If we are discussing a new narrative for ETH’s rise, it could be a court decision that corners the SEC, similar to Grayscale’s victory with GBTC. Ongoing lawsuits for Binance and Coinbase are forcing the SEC to reasonably explain how altcoins are defined as securities.
Perhaps the SEC will face a decision that forces it to step back before the final decision date of May 23. However, well-known crypto ETF experts (Bloomberg Eric and James) expect ETH applications to be rejected, making the $3500 level a challenging barrier to overcome.
