Ethereum (ETH) has finally broken through the psychologically significant $3,000 price barrier after an extremely long journey. Although there is cause for excitement, investors should proceed with caution as challenges are still to come.
Ethereum market headwind not cleared
In this current bull cycle, Ethereum’s price prognosis has been a little underwhelming despite its strong link with Bitcoin. Ethereum traded more than 40% below its all-time high (ATH), while Bitcoin shot to its ATH and broke through above $73,000.
Over the past month, Ethereum has been severely hindered by the $3,000 price barrier. Ethereum has attempted at least six times since at least April 17 to break beyond the $3,000 barrier, but each time it has been refused.
As of this writing, the currency is trading for $3,051.63, but during the last day, its value has decreased by 1.27%.
Ethereum defied the bears to reach its present level, which may not last at this time, after falling as low as $2,925.09. The overall market sentiment towards Ethereum is pessimistic, as seen by the 11.92% decrease in trading volume to $13,653,971,007.
On thin ice
Ethereum is currently going through a significant test that might enhance or detract from its future worth. The reason for the price spike is still unknown, but the decline makes sense.
This is due to Ethereum’s impending designation as a security by the US Securities and Exchange Commission (SEC). This is anticipated to serve as the rationale behind the regulator’s potential denial of several spot Ethereum ETF applications.
Although opinions within the industry on the U.S. SEC’s expected decision regarding this offering are currently mixed, experts generally agree that the chances of approval are low. An overall price decline in Ethereum might be sparked if the SEC rejects an Ethereum ETF.
