Since June 7, Ether (ETH) has lost the $3,800 support level and its price remained below $3,600 on June 19. While some analysts believe the main reason for the bearish momentum is a lack of institutional demand, others attribute it to regulatory uncertainty within the Ethereum ecosystem.

On June 18, Ethereum ecosystem developer Consensys announced that it had completed an investigation by the U.S. Securities and Exchange Commission (SEC) into whether Ethereum can be considered a security and the company's role in ETH sales. However, Ether's decline coincided with the rejection of leading cryptocurrency Bitcoin (BTC) around $72,000 on June 7.

Dan McArdle, co-founder of Case4Bitcoin, stated that as long as the macroeconomic environment is stable, the cryptocurrency is reasonably priced and the long-term bull trend should continue. However, McArdle warns that a “macro shock” or sharp correction in the S&P 500 would have a negative impact on cryptocurrencies in the short to medium term.

Finally, the past four days of consecutive net Bitcoin ETF outflows raise concerns that Ethereum instruments will attract significant inflows as they approach launch. Investors are concerned that Grayscale's Ethereum Trust Fund ETHE could experience outflows if converted into an ETF, similar to issues affecting GBTC due to its high fees.

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