The second-largest crypto by market capitalization, Ethereum (ETH), is currently trading at $3,334.48, according to the latest market data. While ETH has experienced a decline of 11.35% over the past month and 4.79% in the last seven days, it has shown a fair 1.78% gain in the past 24 hours.
ETH Data Chart (CoinMarketCap)
With a market capitalization of over $400 billion, Ethereum ranks as the second-largest crypto after Bitcoin. Its 24-hour trading volume stands at $13.4 billion, while the circulating supply and total supply of Ethereum are both 120,068,469 ETH, indicating no significant changes in the overall supply dynamics.
On the weekly chart, Ethereum has exhibited a bearish trend since hitting a recent high of $4,093. Three out of the last four weekly candles have closed in the reds, with only last week's candlestick closing bullish. The current weekly candle remains bearish, indicating potential downside pressure.The wide Bollinger bands suggest high volatility in the Ethereum market. Also, the Relative Strength Index (RSI) reading of 63 suggests that the market might see further downward movements in the near future.
From a daily perspective, the past three days have witnessed consolidation in Ethereum's price action, following substantial losses earlier in the week. This consolidation is evident in the narrowed Bollinger bands, indicating reduced volatility. Also, Ethereum's prices have been trapped in a descending channel since reaching a high of $4,093 on March 11th, 2024. The RSI currently stands at 45, suggesting a potential break from the current descending channel, either to the upside or downside.
ETHUSD Daily Chart (TradingView)
In case of a breakdown below the $3,200 zone, immediate support for Ethereum is found around $2,707. On the upside, if Ethereum breaks out of the descending triangle, the recent high of 4,093 could serve as immediate resistance, with trendline liquidity lying above the current market price.
Ethereum has witnessed some positive developments, including the launch of an Ethereum exchange-traded commodity (ETC) by German asset manager DWS Group and positive updates from JP Morgan analysts regarding Ethereum's potential security status.
The DWS Group, which manages a portfolio of around $900 billion, launched Bitcoin and Ethereum ETCs on the German stock exchange Deutsche Borse on Thursday, April 4th, 2024. These ETCs, launched in partnership with digital investment manager Galaxy Digital Holdings, aim to track the price performance of Bitcoin and Ethereum, backed by their respective individual assets custodied by Zodia Custody and Coinbase.
The launch of DWS's Ethereum-based commodity product comes amid ongoing debates about Ethereum's classification as a commodity or security in the United States. While the Securities and Exchange Commission (SEC) has been cracking down on the Ethereum Foundation to classify Ethereum as a security, some analysts believe the SEC will find it difficult to do so after approving a commodity-based Ethereum futures ETF.
JP Morgan analysts, led by Nikolaos Panigirtzoglou, shed light on this issue in a report released on Wednesday. They stated that the recent reduction in the staked ETH share of staking protocol Lido raises "the chance that Ethereum will avoid being as a security in the future." The analysts cited the "Hinman documents" released in June 2023, which clarified the SEC's view that network decentralization plays a crucial role in determining whether a digital token is a security.
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