The price of Ethereum (ETH) is currently consolidating around the $3,300 mark, experiencing a decrease of approximately 6.5% for the day. This decline is attributed to investors capitalizing on profits following the recent surge in the cryptocurrency’s value. Additionally, there is speculation circulating that Ether exchange-traded funds (ETFs) may not receive approval in May.
According to Bloomberg’s ETF analyst James Seyffart, there is a belief that these ETF proposals will likely be denied on May 23rd, as the Securities and Exchange Commission (SEC) hasn’t engaged with issuers regarding Ethereum-specific details.
The cryptocurrency market as a whole has been affected by profit-taking, particularly since Bitcoin reached new all-time highs exceeding $73,000 last week. However, Ethereum has witnessed a sharper decline compared to other major cryptocurrencies due to diminishing optimism surrounding ETFs.
While Bitcoin has decreased by 10% over the past week, Ethereum’s price has fallen by 17%. Conversely, Solana has experienced a 17% increase, highlighting its potential advantages over Ethereum amidst a surge in meme coin trading activity.
Ethereum Price Prediction – Where Next for ETH?
With its current value just shy of $3,300, Ethereum’s price has now dropped by 20% from its recent peak at $4,100. This decline mirrors the downturn observed in January this year following the approval of spot Bitcoin ETFs.
During that previous pullback, the price of ETH fell below its 50-day moving average (50DMA). Currently hovering around $3,100, Ethereum still has a bit of room before dipping below this crucial moving average.
This suggests that the ongoing correction might have some more room to unfold. If Ethereum does dip slightly below its 50DMA, it could present an attractive re-entry opportunity for numerous investors.
Assuming the broader cryptocurrency market remains in a bullish trajectory, investors should consider buying into dips at appealing price levels. Even without the advent of an Ether ETF, if Bitcoin surges towards $100,000 this year, it could propel ETH back to its previous record highs.
Therefore, purchasing Ethereum as it nears $3,000 could potentially offer a very enticing prospect for investors.
