🚨 SEC Delays Ethereum ETF Decision as ETH Breaches Key Support Level 🚨

Ethereum is down over 5% today after the SEC delayed approval for ETH ETF issuers' S-1 drafts. This decline has intensified the bearish outlook, as ETH moved below a critical support level, triggering $90 million in long liquidations.

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Despite light comments on issuers' S-1 drafts, the SEC has yet to approve spot ETH ETFs after the US Independence Day holiday. Bloomberg analyst James Seyffart now predicts potential approval next weekend.

The SEC previously approved spot ETH ETF issuers' 19b-4 filings in May but still needs to sign off on their S-1s before these products can go live. Nate Geraci, President of ETF Store, noted that issuers must amend their S-1s by July 8, with another round of filings possibly due around July 12. This could mean a launch week of July 15 for spot ETH ETFs.

Meanwhile, a whale who longed ETH via the Compound protocol is at risk of liquidation. The whale deposited 12,734 ETH ($40M) and borrowed $31.4M worth of stablecoins with a health rate of 1.06. Liquidation looms if ETH drops to $2,984.

ETH Technical Analysis: Bears Lead with Slight Bullish Sentiment from US Investors

ETH is trading around $3,132, down over 5% today, wiping out $90.81M in long positions. The breach of the $3,203 support level strengthens the bearish outlook. ETH may test the $3,029 support level soon. A bounce from here could cool bearish momentum, but a move below may see ETH seeking support around $2,852.

In the past 24 hours, ETH futures open interest (OI) across top exchanges declined by almost 5%, signaling wider risk aversion. However, ETH CME OI rose almost 1%, indicating slight bullish sentiment from US investors due to expected spot ETH ETFs launch.

Rising ETH CME OI may indicate impressive flows for spot ETH ETFs, potentially surprising bears and driving ETH past its yearly high, invalidating the bearish thesis.

🚀 Stay tuned for more updates and don't miss out on potential opportunities!
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