The market is closely monitoring as Ethereum price tumbles and records a 21% decline

Crypto News: Ethereum has encountered a notable decline in its value. Within a week, Ethereum's price has dropped by 21%, sparking concerns among investors and market analysts. This significant downturn highlights the inherent volatility of the cryptocurrency market, where prices can experience rapid fluctuations. The reasons behind this sharp decrease are diverse, encompassing macroeconomic factors and regulatory actions. Currently, Ethereum is trading at US$3141 with a market capitalization of US$377.84 billion and a trading volume of US$34.90 billion.

Latest News of Ethereum

• Grayscale Investments is exploring the addition of staking to its proposed spot Ethereum exchange-traded fund, to enable the trust to stake Ethereum as a strategy to mitigate inflationary pressures arising from Ethereum's proof-of-stake protocol. This strategic decision mirrors actions taken by other companies such as Fidelity, which recently adjusted its spot Ethereum ETF application to incorporate staking features.
• Grayscale initially submitted a Form 19b-4 to NYSE Arca in October to transition its Grayscale Ethereum trust into a spot ether ETF, following the successful conversion of its Bitcoin trust. Despite the green light for spot Bitcoin ETFs, analysts like James Seyffart anticipate potential rejection of spot ether ETFs by regulators by May 23, citing limited communication between the SEC and issuers regarding Ethereum specifics. This divergence from the SEC's stance on Bitcoin ETFs casts uncertainty on the approval timeline for Ethereum-related financial products.
• The SEC has extended the decision timeline for Hashdex and ARK 21Shares Ethereum ETFs to late May, with final rulings scheduled for May 24 and May 30. This postponement triggered an 8% decrease in Ethereum's price, currently valued at US$3,100, reflecting market uncertainty. Leading firms such as BlackRock, Grayscale, and Fidelity are met with doubts over ETF approval, as analysts like James Seyffart point out limited SEC interaction. Market forecasts show a notable decrease in confidence, with Polymarket projecting a mere 24% likelihood of Ethereum ETF approval in May, contrasting starkly with the optimism seen after Bitcoin ETF approval.

Price Analysis of Ethereum

In Ethereum's price analysis utilizing various technical indicators, the Relative Strength Index (RSI) indicates a value of 28.03, signaling a bearish trend, while the Stochastic indicator remains neutral at 25.23. The support level is identified at US$2723.6, with the resistance level set at US$3523.9.

The Ethereum price forecasts for 2024 range from optimistic projections of US$10,000 to US$20,000 by experts such as Anthony Sano and Credible Crypto, to more conservative estimates between US$2,600 and US$3,800 by Rekt Capital and Michaël van de Poppe. Looking towards the medium to long term, predictions suggest a positive trajectory, with CoinPriceForecast indicating a potential increase from US$2,097 to US$5,100 by 2030. Factors like Ethereum's EIP-4844 upgrade and growing institutional adoption are expected to fuel this upward trend. The potential approval of an Ethereum ETF and heightened interest from major financial institutions could further bolster Ethereum's standing in the cryptocurrency market.

Price Prediction of Ethereum

According to Finder, Ethereum's price is forecast to reach USUS$7,492 by 2025 and USUS$19,190 by 2030.

The minimum price of Ethereum in 2025 is expected to be around US$6,396 based on Changelly's price prediction. Around US$7,735 is the maximum anticipated price for ETH. 2025 might see an average trade price of US$6,624.