The price of Ethereum (ETH) has been facing significant selling pressure as prospective issuers of spot ETH exchange-traded-funds (ETFs) await feedback from the Securities and Exchange Commission (SEC) on their S-1 filings submitted on May 31st. Despite expectations for feedback by June 7th, none of the eight approved issuers have received any comments yet. SEC Chairman Gary Gensler has indicated that the approval process will take some time, leaving the market uncertain about when a decision will be made.
As a result of the uncertainty surrounding the ETF approval process, ETH has seen a drop in demand, causing its price to plummet by nearly 10% in the last week to $3,539. Key momentum indicators like the Relative Strength Index (RSI), Money Flow Index (MFI), and Chaikin Money Flow (CMF) are all indicating a spike in selling pressure on ETH. The negative values of the Elder-Ray Index also confirm the bearish sentiment towards the altcoin, with a value of -209 suggesting that bear power is dominant in the market.
If the selling momentum on ETH continues, the price may drop below the $3500 level to reach $3403. However, if bullish sentiment returns to the market and the selling pressure subsides, ETH’s price could rally towards $3610. Investors and traders will be closely monitoring the approval process for the spot ETH ETFs and the impact it has on ETH’s price and market sentiment in the coming weeks.
In the midst of the selling pressure on ETH, it remains to be seen how the market will react to the SEC’s decision on the spot ETH ETF applications. The delay in feedback from the regulator has left investors and issuers in limbo, unsure of how long the approval process will take. As ETH’s price continues to face downwards pressure, market participants are closely watching the key momentum indicators to gauge the strength of the selling pressure and potential for a bullish reversal.
Overall, the uncertainty surrounding the SEC’s feedback on the spot ETH ETF applications has contributed to the selling pressure on ETH, with the altcoin’s price dropping significantly in the past week. While the market awaits further clarity on the approval process, investors and traders will be monitoring the key indicators to determine the direction of ETH’s price movement in the near future.
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