Published on april 28, 2024, 12:29 am
Image source: Fox News
```json { "TLDR": "Ethereum's price is down due to decreased optimism for a spot ETF approval in May, coupled with bearish technical indicators. Liquidations in the crypto derivatives market and skepticism about SEC approval of an Ethereum ETF are contributing to the downturn. Recent reports suggest the approval of a spot Ether ETF next month is unlikely, leading to concerns about further price drops." } ```
The price of Ethereum (ETH) is facing a downturn today due to diminishing optimism for the approval of a spot Ethereum ETF in May. The bearish technical setup has also played a role in ETH’s correction, with its value dropping by over 6.7% between April 24 and April 25, hovering around the $3,100 mark. This decline closely mirrors Bitcoin’s recent drop below $63,000 on April 25.
One significant factor contributing to the decrease in Ether’s price is the increasing liquidations within the wider crypto derivatives market. Additionally, hopes for a spot Ethereum ETF approval in the United States have dwindled alongside Ether’s bearish technical indicators.
Despite initial optimism following the approval of spot Bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC) earlier this year, expectations regarding a similar approval for an Ethereum ETF seem to be fading. With several spot Ethereum ETF applications awaiting decision by the SEC before the statutory deadline of May 23, recent reports suggest that a spot Ether ETF approval next month is unlikely.
Industry professionals are expressing skepticism about the possibility of a spot Ethereum ETF receiving regulatory approval from the SEC. The uncertainty surrounding this issue could potentially exert further downward pressure on Ether’s price as doubts linger regarding future developments.
Recent liquidations in Ether’s derivatives market have totaled over $45.36 million in long positions liquidated over the past 24 hours. When these positions are sold off en masse, it can lead to an influx of supply into the market, thereby driving prices down even further.
While Ether has managed to recover slightly from its recent low point at $2,850 to its current value of $3,134, technical indicators suggest that further downside may be ahead. The appearance of a bear flag on the daily chart indicates that there could be additional room for decline if support levels are breached.
Investors and traders should conduct thorough research and exercise caution when navigating the volatile cryptocurrency market as each investment decision carries inherent risk factors.
Original article posted by Fox News
