Ethereum
Why is the price of Ethereum (ETH) falling today? — TradingView News
The price of Ethereum Ether ETHUSD The token is falling today, pressured by a series of negative fundamental updates from the cryptocurrency market.
On May 7, the price of ETH was trading at $3,022, down approximately 6.20% from the high set the day before. The cryptocurrency’s downward movements mirror movements elsewhere in the cryptocurrency market, primarily Bitcoin. 
Key catalysts that drove ETH prices lower included the U.S. Securities and Exchange Commission’s (SEC) impasse over an Ether spot exchange-traded fund (ETF) application and warning of enforcement action against a major American investment company specializing in cryptocurrencies.
SEC Delays Cash Decision on Ethereum ETF
The current decline in Ether’s value follows the SEC’s postponement of its ruling on Ethereum ETF proposed by Invesco and Galaxy Digital, extending the review period until July 2024.
This postponement follows the SEC’s process of soliciting additional public comments and reviewing regulatory considerations regarding this investment vehicle before it is listed for trading on the Cboe BZX Exchange.
For those unaware, the SEC has been actively investigating the status of Ethereum following the transition of its consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS). The agency’s president, Gary Gensler, indicated that cryptocurrencies allowing staking could meet the criteria of the Howey test, which determines what constitutes a security. 
ETFs are key to allowing more institutional investors to enter a market. As a result, delays in Ether ETF approvals mitigate the price rise that could occur with increased institutional inflows.
SEC slaps Robinhood with Wells notice
The decline of Ether and the broader crypto market over the past 24 hours coincides with another major update from the SEC.
Notably, on May 6, the agency issued a Wells Notice to Robinhood regarding its U.S. cryptocurrency operations, flagging potential enforcement action for alleged securities violations. The notice follows an investigation into Robinhood’s cryptocurrency listings and custody services. 
When a major trading platform like Robinhood receives such a notice, it may raise apprehension about the possibility of more restrictive regulations affecting the entire cryptocurrency industry, including Ether. Such regulatory measures often result in a loss of confidence among investors, causing a massive sell-off of affected assets.
Technical correction of the price of ETH
The drop in Ether price today is part of a correction that started in the “sell zone”.
Notably, the area includes descending trendline resistance and Ether’s 50-day exponential moving average (50-day EMA; the red wave). Both price levels have limited ETH’s attempts to move higher in recent months, and this week is no different.
Despite recent declines, the Ether market outlook remains mostly bullish due to a technical chart pattern known as a descending wedge. This trend is identified by prices fluctuating within a range defined by two converging downtrend lines.
A falling wedge typically resolves when price breaks above its upper trendline and increases by as much as the maximum distance between its upper and lower trendline. Due to this technical rule, ETH price could increase towards the $3,640-$4,115 area in May, depending on the breakout point.
Conversely, a pullback from current levels, which would take price decisively below the lower trendline of the wedge, could invalidate the bullish reversal pattern overall. 
For May, Ether’s price downside target is projected at its 200-day exponential moving average (EMA), which stands at approximately $2,780. Notably, this level also coincides with the 0.5% Fibonacci retracement line.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.