Ethereum
Ethereum (ETH) Finally Breaks Crucial $3,000 Resistance, What Happens Next?
Godfrey Benjamin
Ethereum Surged Above $3,000, But Bearish Headwinds Remain on the Horizon
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After a very long journey, Ethereum (ETH) has finally violated the psychologically important price tag of $3,000. While this is worth celebrating, investors are advised to exercise caution as headwinds loom.
Ethereum market headwinds have not dissipated
Despite its strong correlation with Bitcoin, Ethereum’s price outlook in the current bull cycle has been somewhat disappointing. While Bitcoin hit its all-time high (ATH) and set a new one above $73,000, Ethereum traded more than 40% below its ATH.
The $3,000 price level has been a major bane for Ethereum over the past month. Since at least April 17, Ethereum has made at least six attempts to surpass the $3,000 resistance but has always been rejected on every point.
At the time of writing, the coin is changing hands for $3,051.63; however, it is down 1.27% in the last 24 hours.
ETH1D chart. Source: CoinMarketCap
From a low of $2,925.09, Ethereum outsmarted the bears to reach its current level, a point that may not hold now. Overall market optimism around Ethereum is bearish, with trading volume down 11.92% to $13,653,971,007.
Walking on eggshells
Ethereum is going through a major litmus test that could make or break its valuation going forward. Although it is unclear what exactly triggered the price rise, the drop is explainable.
Indeed, the United States Securities and Exchange Commission (SEC) is considering designating Ethereum as a security. This is seen as the basis on which the regulator could deny multiple Ethereum spot ETF applications.
The industry is currently divided on the probable decision of the American SEC regarding this offer; However, the general consensus of experts is that the chances of approval are reasonably low. If the SEC says no to an Ethereum ETFthis could trigger a ripple effect in an overall price fall.
About the Author
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was born when, as a former banker, he discovered the clear advantages of decentralized money over traditional payments. With his extensive experience covering various aspects of Web3, Godfrey’s articles have been featured on Blockchain.news, Cryptonews, and Coingape, among others.