SEC’s Ethereum ETF Decision Looms: What to Expect in May 2024?

• James Seyffart reinforces his pessimistic thoughts on the SEC’s Ethereum ETF approval.
• The analyst points out the SEC’s prolonged silence on the matter as a sign of the potential denial of the ETF approval.
• In a previous post, Seyffart posited that the SEC would reject the applications by May.

Gain insights into the latest developments surrounding the SEC’s Ethereum ETF decision and its potential impact on the crypto market.

Analyzing James Seyffart’s Cynical Outlook

James Seyffart, an ETF Research Analyst at Bloomberg, remains skeptical about the SEC’s Ethereum ETF approval due to the regulator’s prolonged silence on the matter. Despite previous optimism, Seyffart now predicts a potential denial of the ETF applications by May 2024.

Eric Balchunas’ Diminished Optimism

Eric Balchunas, another prominent figure in ETF analytics, shares Seyffart’s skepticism, reducing the odds of the Spot Ethereum ETF being approved by the SEC to 35%.

Ethereum Price Analysis and Market Outlook

Despite regulatory uncertainties, Ethereum’s price faces significant technical hurdles. Currently trading below key resistance levels, ETH might struggle to initiate a bullish trend unless it clears the $3,320 resistance zone.

Potential Scenarios for Ethereum’s Price Movement

If Ethereum fails to break above $3,320, it could continue its downward trajectory, finding support near $3,220 and potentially testing lower levels around $3,120. Conversely, a successful breach of resistance levels could pave the way for a bullish rally towards $3,680 and beyond.

Conclusion

The looming decision on the SEC’s Ethereum ETF applications coupled with Ethereum’s technical performance leaves investors cautiously optimistic. As May approaches, market participants eagerly await regulatory clarity and monitor Ethereum’s price movements for potential trading opportunities.