Ethereum mirrored Bitcoin’s performance yesterday and shrunk. Even so, optimism remains high. Looking at the candlestick arrangement, it would be ideal if ETH prices broke $3,300 before bulls considered taking long positions. As it is, sellers are still in control, especially if there is no confirmation of the May 15 bar. The bear breakout pattern of mid-April still influences price action. 

Due to the general inactivity on May 15 and prices retracing, Ethereum is mostly stable and bearish. ETH should close above $3,000 for any chance of prices surpassing $3,300. If the coin falls today, participation will also contract from the $14 billion registered in the past 24 hours.

The following Ethereum news events are worth watching:

• The failure of ETH to expand on May 16 means the coin still needs to perform better than Bitcoin. At spot rates, ETH is down to fresh 2024 lows versus BTC. There might be chances if the United States SEC clarifies their status on ETH favorably. For now, the downtrend will likely continue.
• One analyst now thinks all layer-2 operators on Bitcoin and Ethereum are money service businesses (MSBs). For this reason, they are likely to be targeted by regulators, especially in the United States. If the United States SEC acts, it could be another blow for Ethereum.

Ethereum Price Analysis

ETH/USD is trading at around $3,000.

At current levels, sellers of mid-April 2024 are still in control. This outlook will change once Ethereum bulls push prices above $3,300 on rising volumes. In the event, ETH may soar back to 2024 highs of around $4,100.

Conversely, there will be more gloom for ETH bulls if May 15 gains are wiped out today.

In that event, the reaction at $2,800 will be key to determining where prices will go next.

A clean breakout might offer entries for sellers to consider shorts, targeting $2,600 and $2,200.