Ether traders piled up short positions in the past 24 hours, just as Grayscale Investments withdrew its application to the Ethereum Futures Exchange Traded Fund (ETF).
Ether (ETH) is hovering around the major support level at $3,010, down 1.85% over the past 24 hours. according to To CoinMarketCap data.
However, traders are increasingly confident that the price will fall in the short term, with $345 million of short positions scheduled to be liquidated if the price rises by 3%, according to Liquidation Map.
On the other hand, a 3% decline to $2,920 would only wipe out $237 million of your long position.
This follows Grayscale’s May 7 decision to withdraw its Ether futures ETF application, just three weeks before the U.S. Securities and Exchange Commission (SEC) was scheduled to make a decision.
This also comes amid speculation about whether Ether will be classified as a security and the fate of the Spot Ether ETF application in late May.
Despite optimism earlier this year, analysts are increasingly doubtful that the SEC will approve the Spot Ether ETF as next year’s May 23 deadline approaches.
The sentiment in the crypto community is similar. According to New York-based crypto prediction platform Polymarket, 92% participant I believe the Spot Ether ETF will be rejected.
There are also broader concerns about Ethereum’s overall usage and lack of speculative interest from short-term holders (STH).
“Currently, Ethereum usage is so low that the write mechanism cannot keep up with issuance to validators,” crypto on-chain analyst James Check (also known as “Checkmatey”) said on May 7th. As mentioned in the article. post With X.
Related: SEC classifies Ether as a security and rejects Spot Ether ETF — Michael Saylor
On May 8, Glassnode said Ether’s underperformance this cycle compared to Bitcoin (BTC) was due to a “noticeable lag in speculative interest” from the STH cohort. .
However, a few days before this news, some traders were optimistic that Ether price could experience a breakout by the end of 2024.
“It’s a similar fractal as of Q4 2020, but a breakout may occur in Q3 2024, following historical patterns,” said crypto trader Ash Crypto, who pseudonymously said. Said On May 6th, he had 1.1 million followers.
“Ethereum is currently trading within a falling wedge pattern, with the price testing a notable support zone. Expect a potential sideways move around this support area.” Pseudonymous Cryptocurrency Critic TheCryptoPalace Said On May 1st, X had 20,400 followers.
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This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
