Ethereum Price Analysis: Ethereum Extends Correction Amid Uncertainty Over Spot ETF Approval

Ethereum has seen a continuation of its corrective price action over the past 24 hours. According to data from CoinGecko, ETH is currently trading at $3,560.28, up 0.77% on the day but down 8.32% over the past week. 

Despite the recent pullback, Ethereum's fundamentals remain strong. Its market capitalization stands at an impressive $427 billion, cementing its position as the dominant smart contract platform. The 24-hour trading volume for ETH is $16.42 billion, accounting for a healthy 3.84% of its total market cap and ranking second among all cryptocurrencies in terms of market cap.

ETH Data Chart: CoinMarketCap

The total circulating supply of ETH is 120,070,549 tokens, which is also the total supply. Although Ethereum does not have a capped maximum supply like Bitcoin, the implementation of EIP 1559 can still make it deflationary in the long run. This deflationary issuance model has been a key driver of Ethereum's value proposition and long-term growth potential.

ETH Technical Analysis Hints at Consolidation

Ethereum's price action suggests a period of consolidation may be underway. On the weekly chart, the current candlestick is shaping up to be bullish, following last week's hammer candle formation – a potential reversal signal. The Relative Strength Index (RSI) on the weekly timeframe stands at 68, indicating that ETH is approaching overbought territory. This could foreshadow a potential pullback or sideways movement in the near term as the asset tests immediate support levels.

On the daily chart, ETH broke out massively from a descending triangle pattern on April 8th, signaling bullish momentum. However, yesterday, April  10th, the daily candle closed bearishly, a retest of the former resistance-turned-support level of the descending triangle.

ETHUSD Daily Chart: TradingView

The RSI on the daily timeframe is currently at 53, leaving room for further bullish price action before a retracement is likely. Immediate resistance levels to watch include the recent high of $3,729 set two days ago and the $4,093 level.

Moving to the 4-hour chart, ETH is trading above the descending triangle trendline it retested yesterday, paving the way for a potential test of the $3,728 resistance zone. A break above this level could see ETH rally toward the previous high of $4,093 and potentially beyond, fueled by the broader momentum in the altcoin market.

ETHUSD 4-Hour Chart: TradingView

Spot ETF Approval Uncertainty Weighs on Sentiment

While Ethereum's technical picture appears promising, recent comments from Jan Van Eck, CEO of investment firm Van Eck, have dampened hopes for the imminent approval of a spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC). Van Eck stated that the SEC's silence on their spot ETH ETF filing is an indication that approval is unlikely by the May 23rd deadline.

The potential approval of a spot Ethereum ETF has been widely anticipated as a catalyst for further price appreciation, as it would provide greater institutional access and exposure to the second-largest crypto. However, Van Eck's comments suggest that the SEC may not be ready to greenlight such a product, at least in the near term.