Divergent Views on Spot Ethereum ETF Approval, ETH Price Drops 5%

The world’s second-largest cryptocurrency Ethereum (ETH) continues to face strong selling pressure. In the last 24 hours, the ETH price has tanked another 5% and is currently trading at $2,213 with a market cap of $265 billion. It seems that the ETH price can correct an additional 10% to take support at $2,000.

The Spot Ethereum ETF Approval

Eleanor Terrett from Fox Business sheds light on the varied opinions and perspectives surrounding the potential approval timeline for an Ethereum ($ETH) Exchange-Traded Fund (ETF). Discussions involve insights from ETF issuers, investment management firms, and sources close to the U.S. Securities and Exchange Commission.

• One issuer of a Bitcoin ($BTC) Spot ETF, concurrently awaiting approval for an ETH Spot ETF, expresses confidence that the successful approval and seamless launch of Bitcoin spots may influence the SEC to greenlight ETH spot ETFs.
• Conversely, another source presents a contrasting viewpoint, stating that the current sentiment at the SEC is a “hard no,” with some internal resistance to the idea.
• Another source believes that the approval path for ETH spot ETFs could be smoother, pointing to the listing of ETH futures ETFs and BlackRock’s track record in obtaining ETF approvals. They anticipate a potential launch by the end of the summer. Addressing SEC Chair Gary Gensler’s ambiguous stance on Ethereum’s status as a potential security, the source notes the CFTC’s classification of ETH as a commodity and Ripple’s partial victory with $XRP not being deemed a security during secondary market transactions. This leads them to believe Gensler may find it challenging to assert that most digital assets are securities.
• SEC Commissioner Hester Peirce emphasizes the need to avoid repeating past delays with ETH ETFs, emphasizing the importance of applying ‘regular way’ consideration to these products, similar to other comparable offerings.

Terrett concludes that the SEC holds the key to the fate of Ethereum ETFs, with upcoming months expected to provide clues on the depth of SEC staff engagement with S-1 filings, akin to their scrutiny of Bitcoin spot ETFs.

The ETH Price Action

Ethereum experienced a significant decline in the recent trading session, particularly falling below the 50-day Exponential Moving Average (EMA). The analysis suggests that Ethereum might target the $2,100 level. A crucial factor to watch is whether the price breaks below $2,100 and then swiftly rebounds above it, potentially indicating a bullish move.

The 200-day EMA is positioned around the $1,950 level, and its upward trajectory aligns with this zone. The interaction between Ethereum’s price and the rising 200-day EMA presents an intriguing scenario, warranting close observation to discern the potential market dynamics.