Ethereum (ETH) is trading above the key $3,500 level, but is down by more than 2% in the past 24 hours. Here’s all you need to know before trading ETH in the crypto market today:

Regulatory Uncertainty

Lawmakers are pressuring the SEC to clarify its stance on Ethereum’s classification (security vs. commodity) due to recent developments with Prometheum’s ETH custody services. Unclear regulations and lack of a concrete definition for “digital asset securities” create uncertainty for investors.

BlobScriptions and Ethereum Fees

A new method for storing data on Ethereum called “BlobScriptions” has pushed up Blob fees significantly. These fees have since decreased but remain higher than before BlobScriptions’ introduction. The data inscribed on blobs is temporary and will be removed from the network after 18 days.

Spot Ethereum ETF Developments

Fidelity has filed an S-1 form with the SEC for a spot Ethereum ETF that includes staking. This filing highlights additional risks associated with staking, such as slashing penalties and tax implications.

The SEC decision on spot Ethereum ETFs is still pending, with approval deadlines pushed back to May 23rd. Several factors could impact approval, including the ongoing SEC investigation into the Ethereum Foundation and potential regulatory changes.

BlackRock CEO Larry Fink believes a spot Ethereum ETF might still be possible even if classified as a security, but the SEC has the final say.