Ethereum waiting on a bullish trigger, Consensys CEO takes a jab at the SEC
- Ethereum co-founder alleges that the SEC aims to stifle innovation through its enforcement actions against Ethereum-related companies.
- Grayscale CEO says he’s optimistic the SEC would approve its spot ETH ETF application.
- Bloomberg analyst says they’re “as pessimistic as ever” that spot ETH ETFs would see approval in 2024.
Ethereum’s (ETH) price revealed a continuation of uncertainty among traders on Thursday despite optimism expressed by Grayscale about its spot ETH ETF. Ethereum co-founder Joseph Lubin also blasted the Securities & Exchange Commission for their recent enforcement actions against Ethereum-related companies.
Also read: Ethereum could experience bullish run, ETH ‘ultrasound’ money narrative at risk
Daily Digest Market Movers: Joseph Lubin blasts SEC, Grayscale ETH ETF draws mixed views
Ethereum co-founder and Consensys CEO Joseph Lubin said the SEC aims to create fear, uncertainty, and doubt for the crypto industry by taking enforcement actions against Ethereum-related companies instead of providing clear regulations.
In a session at Financial Times (FT) Live’s Crypto and Digital Asset summit in London, Lubin said the SEC seemed to have classified Ethereum without telling anybody. He described the regulator’s recent actions as a deliberate attempt to stifle innovation “that will really transform the landscape.”
Consensys earlier sued the SEC in April for exercising “unlawful authority” over Ethereum after receiving a Wells Notice from the regulator. Lubin said the aim is to get clarity from the courts on Ethereum’s status as the Commodity and Futures Trading Commission (CFTC) has already classified it as a commodity.
He also noted that the SEC may be concerned about the increased attention and capital that Ethereum is getting, considering its improvement in scalability and usability.
Lubin stated that recent actions targeted against Ethereum-related firms could be because of the upcoming deadline for the SEC to decide on Van Ecks’ spot ETH ETF application. “We believe that there’s a flurry of activity designed to enable them to say that their action wasn’t capricious in the very likely event that they deny the Ether spot ETFs,” said Lubin.
Meanwhile, Grayscale CEO Michael Sonnenshein also said at the summit on Wednesday that he’s confident that the SEC would approve the company’s application to convert its Ethereum Trust to a spot ETF. This comes after the company withdrew its application for an Ethereum Futures ETF on Tuesday. “At Grayscale, we decided to focus our energy on our spot products. That’s really core to our DNA,” he said.
However, many interpreted Grayscale’s decision to withdraw its ETH Futures ETF application as a sign of an impending spot ETH ETF denial from the SEC. Considering it took Grayscale to defeat the SEC in a legal battle for Bitcoin ETFs to come to the market, many had earlier anticipated the firm might do the same if its spot ETH ETF application is denied.
In response to Sonnenshein’s optimism, Bloomberg analyst Eric Balchunas disagreed that the SEC would approve a spot ETH ETF this year, stating they’re “as pessimistic as ever.” He also mentioned that the US election in November is a “big variable” in determining whether a spot ETH ETF will come to market.
Uh, disagree. We are as pessimistic as ever. I mean at some point it could happen, but not within a year IMO. What they say in denial and the Nov election are big variables that could fine tune the outlook tho. Btw he also said they withdrew the ’33 Act Ether Futures ETF bc they… https://t.co/IpPzgGbgoz
— Eric Balchunas (@EricBalchunas) May 9, 2024
ETH Technical Analysis: Ethereum awaits a bullish trigger
Ethereum traded in the $3,000 zone as uncertainty in the crypto market continued into Thursday. As previously stated, ETH may be gathering momentum for a potential bull run, considering it has remained at $2,852 to $3,300 for nearly a month.
Also read: Ethereum traders show uncertainty, SEC delays decision on Invesco’s ETH ETF application
ETH is beginning to tilt towards the side of long traders, and rising open interest in Binance, OKX and CME strengthens what could be the beginning of a rally, according to data from Coinglass. Although the digital asset may experience short-term volatility as the May 23 deadline for the SEC to decide on Van Ecks’ spot ETH ETF draws closer.
ETH/USDT 4-hour chart
ETH may grow slowly but steadily to trade above the $3,161 resistance of April 30. A breakout above $3,300 would see ETH’s potential bullish run enter full swing. However, a bullish trigger is needed to sustain such a rally.
Ultimately, the price of Bitcoin would be a key factor in determining ETH’s next price movement.
Ethereum is trading at $3,017 at the time of writing.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.