Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after insider sources informed Reuters of the unlikelihood of the Securities & Exchange Commission (SEC) approving a spot ETH ETF in May.
Read more: Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum spot ETFs are in the news today following recent unveilings. Here are key Ethereum market movers for today:
Chief legal officers of Coinbase and Grayscale, Paul Grewal and Craig Salm, respectively, have also maintained the same position. The individuals said while SEC staff listened, they didn’t ask questions or raise any concern, suggesting the regulator would deny the filings, stated Reuters. Bloomberg analysts Eric Balchunas and James Seyffart have earlier lowered their odds of a spot ETH ETF approval in May, stating the SEC’s lack of engagement as the major reason.
One of the sources told Reuters, “It’s entirely possible we’ll eventually see Ether ETFs. But not until somebody is denied and goes to the courts.”
The president of The ETF Store, Nate Geraci, has previously stated that the SEC may face a lawsuit if it fails to approve spot ETH ETFs.
Also read: Ethereum shows signs of a potential rally as suspected Justin Sun wallet buys heavily
Whales seem to be bullish on Ethereum, buying heavily at every slight market downturn. Data from Spot On Chain confirms several whales bought ETH on Thursday following the decline.
Ethereum seems to be returning to consolidation on Thursday after declining in the past 24 hours. Long liquidations began increasing again, hitting $35.1 million in the past 24 hours.
Read more: Ethereum continues hinting at rally following reduced long liquidations
The $2,852 to $3,300 range appears very strong—both on the upper and lower level—as ETH has been trading inside it for the past 13 days. With the recent decline, ETH may remain inside the range, especially as spot ETH ETFs look highly unlikely with every new piece of information.
ETH/USDT 4-hour chart
However, Bitcoin’s price movement will continue to be a deciding factor in how ETH moves in the short term. If Bitcoin resumes an upswing, ETH may likely follow suit and see higher price boosts, considering its recent hint at a rally before the dip. An SEC spot ETH ETF denial may not necessarily snag the Ethereum price as it appears to have already been priced in.
ETH is trading at $3,160, down 0.6% at the time of writing.
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.