Crypto News: The ongoing pullback in Bitcoin price is also weighing on Ethereum price. On Wednesday, the global crypto markets faced strong selling pressure as BTC revisited the $62,000 level. At press time, the first and second-ranked cryptocurrencies are trading at $62,265 and $3,003, respectively.
The correction in the leading digital assets also affected the overall sentiment in the altcoin market. As a result, the Total3 market cap lost $3.77 billion from its valuation. This reflected a cautious approach among the market participants and potential profit-taking after a strong rebound from the monthly lows.
In a major blow to the hopes of institutional adoption of ETH, Greyscale has filed a notice to withdraw its Ethereum Futures ETF application, which has been awaiting approval since September 2023. This contributed to a 0.27% decline in Ethereum price on Wednesday.
The leading digital assets manager's decision to withdraw the application comes just 3 weeks before its approval deadline. For this reason, the news took most of the analysts by surprise. Nevertheless, the SEC will still have to decide on the fate of at least two ETH spot ETF applications in almost two weeks, as their deadlines approach.
As far as the technical analysis is concerned, ETH/USD is battling the critical $3,000 threshold. The second most valuable digital asset in terms of market capitalization failed to break out of the downward trendline, as visible on the following chart, which triggered a sell-off. Consequently, Ethereum price prediction is once again hanging by a thread.
If the $2,900-$3,000 demand zone fails to hold, there is still a possibility of a deeper pullback till the next demand zone of $2,600-2,700. This zone is also very close to the 0.786 fib retracement level, which lies at $2,582, translating into a potential 13% downside from the current price level.
To avoid the bearish outlook, bulls need to orchestrate a breakout from the downward trendline, which the ETH price has been respecting since its rejection of $4,093 in March.
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