Ethereum Breaks $3,000... But Why Is ETH Price Falling?

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is trading around $3,000. ETH is currently trading at $3,020, down 1.84% from 24 hours ago, according to data from global cryptocurrency marketplace CoinMarketCap. ETH traded as low as $2,997.52 and as high as $3,129.08 on the day.

Ethereum's ETH coin price fell under the pressure of a slew of negative fundamental updates in the crypto market, Cointelegraph reports. The main driver of the decline was the US Securities and Exchange Commission (SEC) delaying its decision on the spot Ethereum exchange-traded fund (ETF) proposed by Invesco and Galaxy Digital, extending the review period until July 2024. “ETFs are important for allowing more institutional investors to enter the market, so a delay in approving an Ether ETF could slow the price appreciation that could result from increased institutional money inflows,” Cointelegraph explained.

The SEC's issuance of a cease-and-desist letter to Robinhood crypto trading platform Robinhood Crypto, a potential target of litigation, also had a negative impact on crypto sentiment. “When a major trading platform like Robinhood receives a cease-and-desist letter, it raises fears that the entire crypto industry, including Ethereum, could be subject to stricter regulation,” Cointelegraph reports. Such regulatory actions often lead to a loss of investor confidence, which drives a sell-off in related assets.”

Technically, ether's price drop is part of a correction that started in sell-off territory, Cointelegraph analyzed. “Despite the recent decline, Ethereum's market outlook remains bullish due to a technical chart pattern called the Falling Wedge. A breakout above the upper trendline of this pattern could lead to a rise to $3,640 to $4,115 in May. On the flip side, a break below the lower trendline could lead to a drop to the 200-day exponential moving average (EMA) of around $2,780.”

“The outcome of Ethereum infrastructure developer Consensus' lawsuit against the SEC could impact the approval process for an ETH spot ETF,” Blockworks reported, citing multiple legal experts. The SEC has until April 23 to decide whether to approve the first ETH spot ETF, the VanEck Ethereum ETF.