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Based on the most recent market data, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is trading at $3,334.48.
Even though ETH has dropped 11.35% in the last month and 4.79% in the last seven days, it has gained a respectable 1.78% in the last day.
Ethereum is the second-largest cryptocurrency behind Bitcoin, with a market capitalization of over $400 billion.
The total supply and circulating supply of Ethereum are both 120,068,469 ETH, indicating no appreciable changes in the main dynamics of supply. Its 24-hour trading volume is $13.4 billion.
Since reaching a recent high of $4,093, Ethereum has shown a bearish trend on the weekly chart.
Only last week’s candlestick concluded bullishly; the other three of the previous four weekly candles have closed in the red.
The weekly candle that is currently in the red indicates that there may be more downside pressure.
The Ethereum market appears to be highly volatile, based on the large Bollinger bands. Also, the market may experience more declines in the near future, according to the Relative Strength Index (RSI) reading of 63.
From a daily standpoint, Ethereum’s price behavior has been consolidating over the last three days after suffering significant losses earlier in the week.
The lessened volatility is indicated by the tightened Bollinger bands, which clearly show this consolidation. Ethereum’s price has also been stuck in a downward trend since it peaked on March 11th, 2024, at $4,093.
With the RSI near 45 right now, there may be a break from the present downward trend, either upward or downward.
If Ethereum were to break below the $3,200 region, $2,707 would provide instant support.
The recent high of 4,093 could act as immediate resistance on the upside if Ethereum breaks out of the descending triangle, with trendline liquidity located above the current market price.
Positive developments for Ethereum have included the introduction of an Ethereum exchange-traded commodity (ETC) by DWS Group, a German asset management company, and encouraging reports regarding Ethereum’s prospective security status from JP Morgan analysts.
On Thursday, April 4, 2024, the German stock exchange Deutsche Borse saw the introduction of Bitcoin and Ethereum ETCs by the DWS Group, which oversees a portfolio valued at over $900 billion.
These ETCs, which were introduced in collaboration with digital investment manager Galaxy Digital Holdings, are designed to mimic the price movements of Ethereum and Bitcoin and are supported by the separate assets that Coinbase and Zodia Custody are in charge of managing.
The introduction of DWS’s Ethereum-based commodities product coincides with continuing discussions on whether Ethereum should be categorized as a security or a commodity in the US.
Although the Ethereum Foundation has been under pressure from the Securities and Exchange Commission (SEC) to categorize Ethereum as a security, some observers think the SEC will have more difficulty doing so now that a commodity-based Ethereum futures ETF has been approved.
In a research published on Wednesday, JP Morgan analysts under the direction of Nikolaos Panigirtzoglou provided insight into this matter.
According to them, there is a greater “chance that Ethereum will avoid being as a security in the future” due to the recent decrease in the staked ETH share of the Lido staking system.
The “Hinman documents,” which were made public in June 2023, were mentioned by the analysts as supporting evidence for the SEC’s position that network decentralization is a key factor in identifying whether a digital token is a security.
Disclaimer: The information provided is for educational and informational purposes only. It does not constitute financial advice, and you should always conduct your research or consult with a professional before making any investment decisions.
