The price of Ethereum (ETH) has dipped below $3,600, defying expectations of a pre-ETF surge. Regulatory uncertainties and broader economic concerns are dampening investor enthusiasm.

Spot ETF Approval Still Up in the Air

ProShares’ application for a spot Ethereum ETF listing on the NYSE was acknowledged by the SEC, but approval is not guaranteed. Ark Invest’s withdrawal from a joint ETF application with 21Shares allows them to pursue a separate filing.

The SEC is still reviewing S-1 filings from various ETF issuers, including major players like BlackRock and Fidelity. No timeline for approval has been announced.

Macroeconomic Concerns Weigh Heavy

Moody’s Ratings warns of potential downgrades for U.S. banks exposed to the struggling commercial real estate sector. The ETH futures premium has dropped to its lowest level in three weeks, reflecting investor hesitation.

Investors remain cautious ahead of the Federal Open Market Committee meeting on Wednesday, which could impact interest rates.

ETH/USD Technical Analysis Points to Potential Downturn

The recent price drop broke Ethereum out of a potentially bullish consolidation zone. If the decline continues, support may be found at $3,400 (50-day SMA) or even lower at $3,200 and $2,900.

Ethereum Fundamentals Remain Strong

Despite the price dip, the Ethereum mainnet continues to generate significantly more fees than leading Layer 2 solutions.