As Ethereum holds steady in the current market, it finds itself confined within a narrow range, delineated by the bearish candlestick formation observed on April 13th. While there are glimpses of strength, a decisive breakthrough above local resistance levels, accompanied by increased participation, is necessary for bullish momentum to take hold. However, such a breakout has yet to materialize, leaving the coin under pressure from a technical standpoint.
The recent performance of Ethereum reflects a mixed picture. While the coin remains stable with a 4% uptick, it has experienced a 13% decline over the past week. These figures underscore the persistence of bearish sentiment, despite prevailing optimism and expectations of price appreciation.
Several Ethereum-related developments are poised to influence price action in the days ahead:
- Rumors surrounding the potential resignation of Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), persist. Some market observers believe that Gensler’s departure could enhance the likelihood of approval for a spot Ethereum exchange-traded fund (ETF). However, market sentiment remains cautious, awaiting official confirmation of Gensler’s resignation and subsequent regulatory decisions by the SEC.
- Bill Hughes, ConsenSys Senior Counsel and Director of Global Regulatory Matters, has disclosed that the SEC is conducting an investigation into the Ethereum Foundation. There are concerns within the community that this investigation could lead to a declaration of Ethereum (ETH) as a security, posing significant regulatory challenges for the cryptocurrency.
Ethereum Price Analysis
ETH/USD continues to exhibit a bearish pattern in the daily chart, reflecting the prevailing market sentiment.
Without notable upward momentum beyond the April 13th range, the path of least resistance for Ethereum remains skewed to the downside.
Thus, according to the chart analysis, any attempted price increase below the $3,300 threshold may provide opportunities for sellers to initiate short positions, with potential downside targets set at $2,600.
A significant drop below the $2,800 level and the current trading range could further exacerbate the sell-off, potentially leading to a retest of critical support levels on both daily and weekly charts, particularly at $2,600 and $2,000.
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