Thursday, May 23, 2024

Uncertainty Grips Ethereum Traders as SEC Delays Invesco ETF Decision.

The price movement of Ethereum (ETH) on Monday was biassed in favour of short sellers due to investor apprehension about the overall state of the cryptocurrency market. However, after Invesco’s spot ETH ETF registration was delayed and Robinhood Crypto received a Wells notice from the Securities & Exchange Commission (SEC), Ethereum’s value on centralised exchanges (CEXs) has been steadily declining.

Market movers for the day: ETH whale sale, falling CEX holdings, and Robinhood Crypto

Ethereum whales may play a decisive role in ETH’s trajectory towards a possible upswing. The top marketmovers for the leading cryptocurrency altcoin are as follows:

The SEC further postponed making a decision on the proposed Invesco Galaxy Ethereum ETF in a filing on Monday. The deadline for Invesco’s submission was originally postponed by the regulator to February. This new move coincides with the SEC’s history of delaying judgements on a number of spot ETH ETF applications, including those from Grayscale, BlackRock, Van Eck, and Franklin Templeton.

Following Ethereum’s recent price decline, a well-known Ethereum whale recently removed 7,000 ETH from Lido and deposited them on Binance, according to data from Lookonchain on Monday. Based on their prior deal, the whale has made almost $16 million in profit. They staked in Lido after withdrawing 12,906 ETH from Binance at a cost of $1,890.

According to data from Glassnode, Ethereum on CEXs has been steadily declining despite the latest whale sale, falling from 16% in March to 10.66% on May 5. This suggests that despite recent price declines, investors are becoming more confident in the top altcoin. For instance, according to data from Lookonchain, a whale that lost $4.63 million on an Ethereum long position started a new long position on Sunday. On Sunday, he transferred 6,965 ETH from Binance to Compound and borrowed 14.5 million USDT.

At the conclusion of the Asian market on Monday, trading volume for Hong Kong Bitcoin and Ethereum ETFs was $7.72 million. By contrast, on the previous trading day, the trading volume of Bitcoin ETFs in the US was approximately $1.88 billion, which is 268 times greater than that of ETFs in Hong Kong. Regarding the trading volume of the ETFs, Bloomberg analyst Eric Balchunas wrote on X, saying, “Yeah, as we advised, don’t expect big numbers in HK vs. US.” This confirms earlier research that suggested Hong Kong’s ETH ETFs would not significantly impact Ethereum’s price.

On May 4, the Securities and Exchange Commission (SEC) sent Robinhood Crypto a Wells notice, claiming that the exchange had broken Section 15(a) and 17A of the 1934 Securities Act. This occurs as the SEC’s decision on Van Ecks’ spot ETH ETF application approaches on May 23. Many have projected that the SEC will reject applications for spot Ethereum ETFs in light of recent actions taken against Ethereum-related companies and cryptocurrency platforms that provide features for buying and selling ETH.

Technical analysis of ETH: The price movement of Ethereum indicates investor uncertainty.

Ethereum appears to be in a downturn after breaking over the $3,161 crucial resistance level on Monday, losing roughly 2.7% of its value. In light of the lack of significant macro and cryptocurrency events in the upcoming days, traders appear unsure of the direction of the market. But as long traders have witnessed liquidations totaling $34.22 million in the last day, it appears that recent price fluctuations are leaning in favour of the short side.

If the drop continues, ETH might get very close to the $3,029 support level, which might be a decent time to buy. A move below the mark would suggest that the negative trend is back on. On the other hand, an upward move will see ETH try to breach the crucial $3,300 mark.

Ethereum may experience a retreat at that level given that it has shown significant resistance over the last three weeks, with ETH trading above it only on April 27 and 28. Therefore, for traders, it can work well as a selling level. Since it continues to have a significant impact on the movement of ETH’s price, the price of BTC could alter the dynamics of this projection.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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