📈 #Ethereum Price Pumps, But SEC Decisions Could Spoil the Party
Ethereum’s price surged by 5.59% last week, reaching $3,089.25. However, it has experienced a modest decline of 0.56% in the past 24 hours. With a trading volume of $10.95 billion and a market capitalization of $371.1 billion, Ethereum’s market activity is attracting considerable attention.
Technical analysis reveals that the Relative Strength Index (RSI) for Ethereum on the weekly chart sits at 55.47. This value indicates a market that is neither oversold nor overbought. Traders are therefore anticipating potential price movements in either direction. This balanced RSI suggests that the market could soon experience increased volatility.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator on the weekly chart stands at 233.9, suggesting a possible bullish trend reversal. Traders often seek confirmation from other indicators before making investment decisions. Consequently, this MACD signal adds to the anticipation of a potential upward price movement.
The Know Sure Thing (KST) indicator on the weekly chart also presents a strong bullish signal, reading 622.9323. This suggests that Ethereum could be a potentially lucrative buy opportunity for some investors.
Meanwhile, an additional layer of uncertainty is being injected into the market by the SEC. The SEC is scheduled to deliver critical rulings on several spot Ethereum ETFs this week. VanEck’s application is expected to be submitted by May 23, while ARK Invest and 21Shares will receive their decisions on May 24.
A number of prominent investment firms, including BlackRock, Fidelity, Bitwise, Galaxy Digital, Franklin Templeton, and Hashdex, are anxiously awaiting the SEC’s decisions. However, industry observers predict that the SEC will likely reject these applications. This expectation stems from the agency’s limited engagement with ETF issuers thus far.
The reasons behind the SEC’s anticipated decision remain unclear. Bitwise’s Matt Hougan suggests that a lack of sufficient data could be a factor.
