Ethereum Price Stumbles Despite Spot ETF Hope, Regulatory Hurdles Remain

Ethereum Price Stumbles Despite Spot ETF Hope, Regulatory Hurdles Remain

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

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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.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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