Ethereum
Bitcoin and Ethereum Prices Fall as Greyscale Pulls Its ETH Futures ETF App
Crypto News: The continued decline in the price of Bitcoin is also weighing on the price of Ethereum. Global crypto markets faced heavy selling pressure on Wednesday as BTC revisited the $62,000 level. At press time, the first and second ranked cryptocurrencies are trading at $62,265 and $3,003, respectively.
The correction in major digital assets has also affected the overall sentiment in the altcoin market. As a result, Total3’s market capitalization lost $3.77 billion from its valuation. This reflects a cautious approach from market participants and potential profit-taking after a strong rebound from monthly lows.
Ethereum ETF hopes to face setback
Dealing a blow to ETH’s hopes for institutional adoption, Greyscale filed a notice to withdraw its Ethereum Futures ETF application, which has been awaiting approval since September 2023. This contributed to a drop of 0 .27% of the Ethereum price on Wednesday.
The leading digital asset manager’s decision to withdraw the application comes just 3 weeks before the approval deadline. It is for this reason that the news surprised most analysts. Nonetheless, the SEC will still have to decide the fate of at least two spot ETH ETF applications in nearly two weeks, as their deadlines approach.
Ethereum Price Prediction
When it comes to technical analysis, ETH/USD is battling against the critical $3,000 threshold. The second most valuable digital asset by market capitalization failed to break out of the downtrend line, as shown in the following chart, triggering a massive sell-off. Therefore, the Ethereum price prediction is once again hanging by a thread.
If the $2,900-$3,000 demand zone fails to hold, there is still a possibility of a larger pullback to the next $2,600-$2,700 demand zone. This area is also very close to the 0.786 Fib retracement level of $2,582, which translates to a potential 13% downside from the current price level.
To avoid the bearish outlook, bulls must orchestrate a breakout of the downtrend line, which ETH price has respected since its rejection of $4,093 in March.