• Ethereum dropped below $3,000 amid ongoing debates about the SEC’s potential approval of spot ETH ETFs, with the crypto community divided on the outcome.
  • Key figures, including Evan Van Ness and Eric Conner, predict varying possibilities, while technical analysis shows Ethereum’s market performance remains volatile.

Crypto Community Divided Over SEC’s Potential Decisions

Ethereum has dipped below the critical $3,000 level again, sparking lively debates within the crypto community about the future of spot ETH ETFs. This latest price action follows a period of volatility and speculation regarding the U.S. Securities and Exchange Commission’s (SEC) upcoming decision on these financial products.

Crypto Community Shares Predictions on Spot Ethereum ETFs

With the SEC’s decision on spot ETH ETFs just around the corner, predictions are rife. The community is divided, with opinions ranging from outright approval to strategic non-decisions.

Evan Van Ness, former chief decentralization officer at the Ethereum Foundation, suggests that the SEC might approve the ETFs despite ongoing investigations into Ethereum’s security status. Van Ness posits that SEC Chairman Gary Gensler could sanction spot ETH ETFs while still maintaining the stance that Ethereum is a security.

Adding to the mix, Larry Fink, CEO of BlackRock, previously indicated on CNBC that the SEC might approve these ETFs even under the security classification, a viewpoint supported by the agency’s past actions. Notably, the SEC has considered Ethereum a potential security since April 2023 but still approved ETH futures ETFs in September.

Eric Conner, co-author of Ethereum Improvement Proposal EIP-1559, remains optimistic, predicting that the SEC will give the green light to spot ETH ETFs on May 23.

In a unique twist, a user on X, @fewture, speculates that the SEC may neither approve nor deny the applications. Instead, the agency might offer no official response, effectively granting de facto approval, only to contest this process judicially later.

Further complicating the matter, some believe political pressures could influence the SEC’s decision. If the Biden administration recognizes the potential political fallout of an anti-crypto stance, it might push for ETF approval to avoid electoral backlash.

ETH Technical Analysis: Uncertainty Reigns

Ethereum’s market performance remains turbulent, with the cryptocurrency falling below $3,000 after a brief rally. Compared to the rapid growth seen in Bitcoin and Solana, Ethereum’s progress has been sluggish.

The ETH/BTC ratio has steadily declined throughout the year, but some analysts predict it may soon bottom out and rebound. A potential rally could redirect capital into Ethereum, boosting its price.

Despite these optimistic projections, Ethereum investors continue to exhibit caution. The uncertainty surrounding the SEC’s decision on spot ETH ETFs is a significant factor contributing to this market hesitance. As the deadline approaches, the crypto community watches closely, aware that the outcome could significantly impact Ethereum’s future trajectory.

Ethereum’s recent dip below $3,000 and the upcoming SEC decision on spot ETH ETFs have created a climate of uncertainty and speculation. The crypto community remains divided, with varied opinions on how regulatory decisions will shape the market. As Ethereum traders and investors await clarity, the next week promises to be crucial for the largest altcoin.

By vivian

Vivian Njoroge is a seasoned crypto and blockchain news writer with a passion for decoding the complexities of the digital financial world. Armed with a keen eye for emerging trends and a knack for simplifying intricate concepts, Vivian brings a unique blend of expertise and enthusiasm to her writing. Her articles, characterized by clarity and depth, aim to keep readers abreast of the ever-evolving landscape of cryptocurrencies and blockchain technology.