• Ethereum’s price has dropped 9% since last Monday, as investors await the SEC’s decision on an $ETH futures ETF expected by October.
• A bear flag appears to be forming on the 4-hour price chart, signaling further downside in the near term.
• The SEC’s decision on Ethereum futures exchange-traded funds (ETFs) this October will be crucial for traders and investors alike.
Ethereum’s price has been highly volatile of late, as investors anticipate the SEC’s decision on an $ETH futures ETF, expected by October. It’s been a disastrous week for $ETH holders, with the token’s value sinking over 9% since last Monday. At the time of writing, $ETH is hovering around the $1,680 level – erasing gains made in the past two months and experiencing its worst weekly close since April.
Bear Flag Forming
On the 4-hour price chart, the $ETH price appears to be forming a bear flag which could signal further downside in the near term. In addition, Crypto Fear & Greed Index has dropped to just 38 – deep into “Fear” territory – indicating that market sentiment is leaning toward caution and pessimism.
SEC Decision Awaited
Traders are now bracing for SEC’s crucial Ethereum Futures ETF decision set for October this year. At least three firms have filed proposals for an ETF related to Ethereum: VanEck SolidX Bitcoin Trust; WisdomTree Bitcoin Trust; and Bitwise 10 Large Cap Crypto Index Fund. While a futures ETF could bring more mainstream adoption, there are concerns that limitations on direct Ethereum exposure could dampen its impact.
New altcoins like Launchpad XYZ and yPredict have emerged offering different value propositions and use cases to Ethereum that may prove attractive to investors looking for alternatives or diversification away from ETH assets.
With all eyes now focused on what happens next month when it comes to possible regulatory approval of an ETH futures ETF product from one of the three applicants mentioned above – investing in cryptocurrencies continues to remain a risky endeavour with no clear path forward yet established by regulators worldwide regarding how digital assets should function within existing financial systems .